Trade Wars Between USA and CHINA

TRADE WARS BETWEEN USA AND CHINA

Table of contents

Title 1

Table of Contents . 2

Introduction .3

New concepts and definitions 4

Trends and situational analysis . 4

Undervaluation of currency . 7

Low priced labor and products . 8

Counterfeited and intellectual property rights . 8

Non-adherence to WTO rules . 9

Trade surpluses . 10

Congress action . 11

Rationale and Justification .11

Recommendations .15

Conclusion . 17

References . 19

Introduction

Since the late 1970s when China opened its economy to the world , the country

has cut a sizable share of world export market . From a small economy that had been hampered by years of communism practices , Chinese economy is rated third biggest and the fastest growing economy in the world . For the last two decades , Chinese economy has recorded a double digit growth , mainly driven by manufacturing and export sector . The country has also continued to attract the largest number of Foreign Direct Investors owing to government tax incentives and low cost labor economy . As the largest economy in the world , United States has been disturbed by the phenomenon economic rise of China . With the growing economic clout recording a double digit growth , Americans have accused China of stealing U .S jobs as investors desert America for China American has also accused China of undervaluing Yuen pegging it to the dollar and exporting deflation through marketing its industrial goods and unfair market prices . China has also been accused of violating workers rights in to minimize the cost of labor and for failing to meet...