US - China trade Relations now and in the near future.

Current US - China Trade Relations

Introduction

The subject of US-China trade relations is a controversial issue among American businessmen and trade policy makers . China is currently number three in terms of export as well as import , and the US public sees the threat of China looming in the horizon as it continues to gain an ascendance over the American market because of the volume it trades in But economists view the matter as a complicated balance of pros and cons and will not be easily resolved . This will clarify the current

issues regarding US-China trade to provide an accurate picture of how things really stand

Emergence as an economic power

The sheer size of the Chinese market , at 1 .3 billion people , makes it almost inevitable that China would have a considerable impact on the international market . But it has not been an overnight success . Even after it overthrew the dynasty rule and embraced the communist rule of Mao Zedong , it would take China more than 60 years to get into the world market . It was in 1978 that the free market initiative under the leadership of Deng Xiaoping and today , China is the second biggest world economy next to the US , and 49 .5 of US businesses with interest in China plan to further increase their investments (Lynch ) China 's exports account for 25 of its Gross Domestic Product and China is the top importer of raw products such as copper , aluminum and other raw materials that it is being sourced increasingly from third world countries such as Africa (China 's economic miracle : the high price of progress ) Presently , the board of directors of the International Monetary Fund (IMF ) is debating on the amount of increase to be given to the voting rights of China from 2 .94 to 3 .65 , a definitive sign of the important role China is playing in the global economy (Eunjung

It is precisely due China 's rising economic importance that more and more attention is being focused on the various issues that are regarded by the general population as issues that need to be resolved in that the balance of economic power be kept , and not tilt too much to the side of this Communist country

Bilateral Trade Deficit

In 2006 , the bilateral trade deficit of the US in relation with China based on Washington estimates reached US 214 Billion , up 27 in exports from 2005 , compared to a weaker 20 increase in imports (McGregor and Callan

The 2005 Economic Report of the President ' maintained that the bilateral deficit would have a very low impact on the US economy as the increase in the imports from China is because companies have shifted their assembly operations from other countries around the Pacific Rim to China , i .e . from Japan (Odessey ) However , the fact that labor costs in China remain low and the slow appreciation of the Chinese currency (renminbi or yuan ) continues to give China what many consider an unfair advantage , pressure...