Sino-US Trade Imbalance Causes, Trends And Measures

Economic globalization is the mainstream of world economic development, it has a profound impact on international trade, production, investment and finance and other fields. Since the 90s of the 20th century, with the rapid development of economic globalization, China-US economic and trade relations develop rapidly. According to the statistic of Chinese Customs, the total trade volume between China and U.S. has come up to 298.2 billion dollars in 2009, China has exported to U.S. 220.8 billion dollars, and imported from U.S.77.4 billion dollars. According to the statistic of the USA, the total trade volume between China and U.S. has come up to 366 billion dollars in 2009, China has exported to U.S.296.4 billion dollars, and imported from U.S.69.6 billion dollars.In recent years, Sino-US economic and trade relationship has experienced a tremendous expansion, bringing about tangible benefits to both peoples. It has become an enormous impetus to Sino-US relations, at the same time promoting the economic prosperity of neighboring regions and the world indeed. The reason for the rapid growth of Sino-US trade lies in the high complementarities of the two economies. An interdependent and mutual-beneficial trade pattern has been initially established between the two countries.However, the imbalance of Sino-US trade has grown rapidly since 2005. As the numbers expands, the trade imbalance has been much a concern to all quarters of U.S. and China society. It has gone beyond the trade and economic area to become a political issue impacting Sino-US relations. China is one of the largest developing countries in the world, and the USA is the most developed country, how to solve Sino-US trade imbalance is important to protect the 1 interests of both countries and help the world economy running smoothly.Sino-US trade imbalance is a problem which has complex causes, including the international industrial transfer, statistical difference, the USA export controls, differences in economic structure and consumption habits of the two countries and openness of China's service sector is not high. In fact, the real reason of China's trade surplus with the USA is international industry transfer, and the USA makes strict restrictions on exporting Hi-tech products to China. Therefore, the most effective means to solve the Sino-U.S.trade imbalance depend on the U.S., if the United States don't make strict controls on bilateral trade, the USA trade deficit problem will be solved.This article utilizes comparative study and applies theory to reality research techniques. It begins with the present situation of trade imbalance between the USA and China. It analyzes the reasons of the generation and expansion of trade imbalance between the USA and China comprehensively, elaborates the influence and all sorts of questions that the bilateral imbalance will bring about, and the trend of Sino-US trade in the future. In the end, it proposes countermeasures to improve the trade imbalance on the behalf of China.The paper divides into six parts. The first part is Chinese and American trade history. While reviewing Chinese and the USA trade history, it explains the present situation of trade imbalance between America and China by figure, graph and other proof method. The second part analyses the reasons for the trade imbalance between China and the USA. It illustrates the reasons from five aspects. The third part studies the influence that the trade imbalance between China and the USA brings about, including the influences to America, to China and to the whole world. The fourth part predicts the development of Sino-US trade imbalance trends. The fifth part is the countermeasures of how to improve the present situation of trade imbalance. Finally, make a summary of the whole paper.The strategies are made on the part of China. Firstly, try to make negotiations and consultations with the USA. Secondly, make appropriate adjustments of the sales markets and foreign investment policy. Thirdly try to go out to do businesses with other nations and regions.Another innovation of this paper is on the analysis of both positive and negative factors to predict Sino-US trade surplus. In the short term, the imbalance situation is difficult to solve; What's more, the figure may even rise. Due to the world financial crisis brought sluggish demand all over the world, the imbalance situation may ease a little, however, with economic recovery, Sino-US economic and trade exchanges will become frequently, the trade imbalance will grow.In the short run, the factors which affect Sino-US trade imbalance are difficult to eliminate, so Sino-US trade imbalance will continue. But any sustained trade surplus and trade deficit don't exist, Sino-US trade will move towards equilibrium in the long term.This issue needs to be further explored as following:Firstly, when analyze the structural characteristics of Sino-US trade imbalance, the paper doesn't study deeply in specific industry about the reasons for the imbalance trade. Secondly, the paper is lack of quantitative analysis of econometric models to predict Sino-US trade trend.There will inevitably produce some discordant factors in the process of Sino-US economic and trade relations expanding. "Fighting, the two injured, cooperating, mutually beneficial." Sino-US economic and trade relations is actually a "two-way" game. The only way to solve Sino-US trade imbalance is through the joint efforts of two governments, on the basis of equality, mutual benefit and win-win cooperation and the principle of negotiation. Any country attempting to retaliate or take unilateral measures of economic sanctions to the other is unwise. With the expansion of the common interests of Sino-US economic and trade, there will not have a large-scale trade war between the two countries.On the joint efforts of both countries, I believe, the issue of Sino-US trade imbalance will be eased, Sino-US economic and trade relations will be always continue to develop steadily in the friction.