Trading allegations about the quality of USA imports from China

Trading Allegations about the quality of USA imports from China

Part - A

China being the eight largest trading centers with U .S buying around 22 billion in U .S goods and they are third biggest supplier selling 125 billion in goods to the US , thus contributing 38 percent of Chinese world exports and created a trade deficit between U .S . and China . The increased trade deficit of US with China is largely due to China 's rising competitiveness . This has created increased threat especially in textile and electrical appliance division . All the

low-tech products which where imported from Asian countries are now being imported from China . Due to this reason China is believed to manipulate its currency thus hindering the market forces from entering the global competitive market and trying to gain the competitive advantage . Analyst from International Trade Organization has reported that Yuan is undervalued by 30 when compared to US dollar in 2004 which artificially lowered the cost of Chinese goods which facilitated Chinese exports more attractive . Further , most of the imported product from china is estimated to be tainted or forged products which affect the consumer market and the American Economy . In the recent past , U .S court of law has faced with several allegations form U .S . International Trade Commission and the U .S . Department of Commerce seeking for relief for the injury caused by unfair trade practices by China . In October 2003 , the association of U .S . manufacturers of wooden bedroom furniture and several local manufactures has alleged an antidumping petition in the US court of law against China . Further , the American government and several other departments and industries of America have reported for counterfeit and tainted products being dumped in the American market and resulted in loss for local industries in form of profit and increased the rate of unemployment as all the jobs are shifted to the foreign countries . Further , the invasion of contaminated products has created dangerous side effects to the consumers . The would discuss in detail the reasons for trade war between China and America

Part - B

With the incessant economic influence of China , U .S . allegedly indicts Beijing to take the full responsibility for manipulating the currency to the crooked trade policies . Further , Americans are highly distressed about the increase in economic growth of China (at above nine percent as it is relentlessly disturbing the U .S . job market . On the other hand the Americans blames China for misappropriating the U .S jobs , for keeping the Yuan underrated by attaching it to dollar , for exporting devaluation by promoting its products at unfair prices , for importing tainted and counterfeit products , for infringing the rights of its workers by maintaining lower labor cost and for failing to meet its obligations to World Trade Organization (WTO . Thus , the misapprehension between the two countries has led to trade war and if this situation continues it would damage the entire trading relationship resulting in damage to both the sides

However , China claims that they...