Political Economy Analysis On Sino-American Trade Friction

The development of economic and trade relation between China and America is not only important for the two governments, but also important for the world economy. However, trade friction has never really stopped yet since the normalization of the trade relation between the two countries. Especially after china's entry into WTO, trade friction is frequent which adds negative factors to the further development of the economic and trade relation. Therefore, it is significant to study on Sino-American trade friction both realistically and theoretically.Combined with traditional trade theory, international relations, game theory and mathematical statistics, this paper introduce analysis normal form of trade political economy.We get conclusion for deep-seated reason of Sino-American trade friction: be consistent with the policy making, the emergence of trade friction lies in the process of domestic politics. But it does not mean that China can not do anything to this. Contrarily, China should particularly be aware of the political process of trade policy making. Thus China could positively response to the trade friction through corresponding strategies and tactics.