Sino-US Trade Conflicts And Its Influences On China's Economy And Trade

With the increasingly close contacts and exchanges between China and the United States in political, economic and cultural fields, the trade volume between the two countries have been continuously growing, and the trade structure is also changing. At the same time the trade conflicts between the two countries is becoming more and more frequent, mainly in trade imbalance, the U.S. anti-dumping issues with China, textile trade issues, agricultural trade issues and intellectual property issues. To Chinese products, U.S. has been taking more and more measures such as anti-dumping, anti- subsidy, and peculiar safeguard measures, which is a serious distortion of free trade. According to the traditional international economic theory, any distortion of free trade will do harm to trade-country's social welfare level, and cause "deadweight loss" to the whole world, and is also not in accordance with the "symptomatic rules". There is no doubt that the growing trade conflicts is putting increasingly negative impacts on the smooth development of Sino-US economic and trade relations. This phenomenon has aroused interests of many people, and so how to view this and how to deal with it become the major issues of common concern for China's government, business and academia.This thesis first outlined the current situation of Sino-US trade and the forms of Sino-US trade conflicts, and then explained in detail step by step from the aspects such as the multi-level reasons of the Sino-US trade conflicts, the influences of trade conflicts on China's economy and trade, and China's measures to deal with trade conflicts.This thesis consists of 4 parts. Part 1 is mainly on the problems during the development of the Sino-US trade relations and the forms of Sino-US trade conflicts. The main problems are trade deficit of US-China trade, the returning US trade protection, the strengthening of US protection to its domestic trade, the growing arguments between the two countries on antidumping and antisubsidy measures, the growing pressures on standards of environment protection and labour, the growing pressures on revaluation of RMB rate and the disputes of protection of intellectual properties' right. The main forms of trade include three aspects such as two "unfavorable terms", technical barriers to trade (TBT), national legislation of US and anti- subsidy measures. Part 2 is analysis on reasons and causes of Sino-US trade conflicts, which is firstly due to the demand of US political benefits, secondly to the factors of commercial competition, thirdly to the unbalanced economical development between the two countries, lastly to the influence of China's politics, military and diplomacy.Part 3 is on the influences of Sino-US trade conflicts on the China's economy and trade. Trade conflicts are not only favorable, but also adverse to China's economic development. The favorable sides are: trade conflicts can speed up the upgrading of product structure, be conducive to cultivating China's competitive industries, to developing China's foreign direct investment, to promoting diversification strategy of China's export market and transforming economic growth mode, can help to improve China's overall national welfare and to build a socialist harmonious society. The adverse sides are: the growing trade conflicts strengthened the mindset of US of safeguard against China emergence and rise and destroyed the normal bilateral trade relations. With the "overflow effect", trade conflicts have many restrictions to China's exports and United States has asked China to strengthen the protection of intellectual property.Part 4 is on the China's Countermeasures to conflicts. Firstly China and US should establish a mechanism of coordination and cooperation to continuously study and discuss the problems in the Sino-US trade relations. Secondly China should give force to the US from the political aspect to recognize the position of Chinese market economy. Thirdly, China should utilize Dispute Settlement Mechanism (DSM) to settle disputes. Fourthly, China should establish a well-organized and scientific system of alert and a mechanism of quick responses to conflicts to protect the basic benefits of all businesses and the government. Fifthly, China should train some experts and professionals in settling bilateral trade conflicts to promote the development of Sino-US trade.