On The Performance Of Sino-us Trade Friction, Causes And Countermeasures

In today's world, the United States is the biggest developed country and China is the largest developing country. The United States ranked the first largest nation in trade volume and China the third in 2005. Trade relations between China and the United States are significant and function on many aspects. Analyses on trade relations between China and the United States, especially trade disputes, have great theoretical and practical significance.Since the establishment of Sino-U.S. diplomatic relations in 1979, bilateral trade volume has been increasing rapidly. The fields of economic cooperation have been expanding greatly and the depth has been strengthening. The trade volume between China and the United States increased from 2.451 billion dollars in 1979 to 211. 63 dollars in 2005. China's rapid economic development is the fundamental reason for the great development of bilateral trade relationships. Complementary economic restructures and the differences in economic development between China and the United States benefited the both nations great deal. Meanwhile, trade disputes and obstacles that could not be ignored and need urgent solution appeared gradually.The frictions in Sino-U.S. trade relations have brought huge economic losses to both countries. With the growth of Chinese enterprises and the progress of China's technological research and development, China's exports could cause more impacts on the related products of the United States. In such circumstances, Sino-U.S. trade frictions could become more and more serious. Trade deficits, protection of intellectual property rights, RMB exchange rate, market economy status, textiles and garments and other issues will become the focuses of Sino-U.S. trade frictions. According to our analyses on the origins, evolution and development of trade frictions between China and the United States, we found that Sino-U.S. trade frictions are strengthening step by step, the trade friction areas are expanding gradually, the trade frictions are gradually combining with human rights and politics. The means of trade frictions are also changing from the traditional means such as "antidumping " and "countervailing" to some new methods such as "special safeguard provision". There are many reasons for the Sino-U.S. frictions, including economic reasons and non-economic reasons. The major reasons can be summarized as the followings: China's trade expansion; China's dependency on the U.S. market; protecting its labor-intensive industries by the United States; China's failure to fulfill its obligations and commitments in WTO; the differences in political systems, ideologies, and cultures are also the significant reasons for trade frictions between the two nations. From a historical point of view, any country in the process of uprising has been accompanied by the various conflicts with other nations, including trade friction. These conflicts are unavoidable. The key to solve the problems is how we can cooperate sincerely with each other to find some positive-game methods. Based bon our analyses on Sino-U.S, trade relationships, we try to find out some reasonable proposals from the perspectives of macroeconomics, government, enterprises, industries, etc: These proposals are (1) adjust our development strategy of foreign trade to reduce trade frictions; (2) strengthen government negotiation to reduce the unfair trade treatments; (3) try to foster the international competitiveness of our enterprises, including price competitiveness and non-price competitiveness; (4) improve the function of trade associations to organize and coordinate the foreign trade order (5) establish an international united front to skillfully resolve the trade disputes; (6)creatively utilize the international rules and regulations to struggle for our benefits; (7)accelerate domestic economic development to increase the demand of domestic market.