The Analysis On The Change Characteristic Of Terms Of Trade Between China And The USA And The Effect Factors

Since 1972 the trade relationship of China and the USA was resumed, the trade between China and the USA has developed rapidly because of the mutual complementary economic structure characteristics. Now, the USA has been the second largest trading partner of China. It is important to Chinese foreign trade. The period from 1993 to 2008 is an important stage.In this stage, the import and export from China to the United States has expanded rapidly. China Not only gets rid of the trade deficit, but also maintains the trade surplus in a long term.And the trade surplus is enlarging still now.In this paper, we focuse on the trade conditions between China and the USA in the period from 1993 to 2008. We collected large amounts of data and calculated the data with the Pasche price index formula and the Laspeyres Quantity index formula in order to measure the terms of trade. The result shows that the net barter terms of trade index of whole products and the net barter terms of trade index of the primary products and the net barter terms of trade industrial products has declined together since the year of 1993.And the prices terms of trade of industrial products had the greatest reduction. Due to the export quantity index rising rapidly, the net barter terms of trade index of whole products and the income terms of trade index of the primary products and the income terms of trade industrial products has increased together since the year of 1993. And the income terms of trade of industrial products rose up the most rapidly. After measuring the terms of trade,we studied the four most important factors which includes foreign trade policy, the economic growth, the export commodity structure, the FDI from the USA to China and so on. Then, we can predict that the net barter terms of trade will still worse and the income terms of trade will still be improved in the future. Finally, we come to a conclusion that we can improve the terms of trade through three approach.First, we should transform the foreign trade growth mode. Secondly, we should accelerate the upgrading of the industrial structure, and optimize the mix of export commodities. Thirdly, we should guide foreign investment direction to the area where we need.