Double Circulation System And Its Prospects In China-us Economic And Trade Relations

With the development of Sino-US bilateral trade and investment,a special relationship is becoming between the two countries. Sino-US trade imbalance is growing, the United States has accumulated a large number of trade deficit, China has accumulated a large number of trade surplus, and accumulated huge foreign exchange reserves. China invests its foreign exchange reserves mostly in U.S. dollar assets, mainly in the U.S. treasury. So it makes up the U.S. trade deficit. We can call this special relationship between Sino-US economic "double-loop"system.Firstly, this paper analyzes the reasons for the formation of double-loop system from four aspects: the international monetary system, the internal structure of Sino-US economic imbalance, the U.S. expansionary monetary policy and the international industrial transfer; Secondly, the paper analyzes how the double-loop system impacts the two countries and the world economy; then the paper analyzes the prospect of double-loop system after the financial crisis, mainly from four aspects:1.The international monetary system is fagile;2.The financial crisis has shaken people's confidence on the U.S. dollar, 3.After the financial crisis, the U.S. And china may change their economic growth mode;4.The financial crisis accelerates the adjustment of China's foreign exchange reserve management. Just because of all these factors, we can see the double-loop system is not sustainable. At last this paper proposed some suggestions for China's future development strategy.