Study Of Sino-us Trade Deficit

Trade deficit of the United States appeared in 1971 and it has been progressively on the increase. Among the countries, which have favorable balance with US, China is the focus to be aimed at, because the trade deficit between US and China has increased a lot in these recent years. If China and US, the largest developing and developed economic entity in the world separately, can keep good and stable trade relationship, it will benefit not only the two countries but also the development of the whole world economy. However, a tough problem emerges with the expansion of the bilateral trade. That is, American trade deficit with China is also expanding and the gap is larger and larger. Therefore, various kinds of trade frictions have appeared between the two countries. Especially China, has suffered a lot. World Trade Organization statistics show that China has encountered 166 cases of anti-dumping from the year 2000 to the first half of 2004. Among them, the United States is the country that attacks China the most. It also exerts restrictions on China through such means as the intellectual property right, quota, etc. Thus, in order to make the Sino-America trade develop in a healthy way, it is necessary to further study the structure, scale, origin causes and influence of Sino-America adverse balance. The study will help both sides treat this problem objectively, and relax the frictions. This is exactly the meaning of the thesis. The full text divides into four parts: Chapter one, the theoretical foundation of studying in Sino-America adverse balance, including three sections altogether. Section one: basic conception of the international balance of payments and the theory analysis; Section two: a summary of the comparative advantage theory; Section three: the development of processing trade and mobility of production factors. This chapter has important meanings in analyzing the definition of Sino-America adverse balance, and the inevitability of the formation of their trade deficit. Chapter two, present situation and causes of the trade deficit in US. Through the analysis of this part, it helps to realize that the adverse balance between China and US is only a part of the whole deficit of American trade. And it is essentially closed with the macro-economic policies in the United States and the world economic, political environment. It should be noted that the former is exactly the root which the adverse balance of US exists so long. Chapter three, the development and current situation of the American trade deficit with China, as well as its causes. This part is the center of the whole text. In section one,there are three parts. First, the development and current situation; second, goods trade structure of the adverse balance. This part discloses that the trade between China and US is the embodiment of international division of labour. Third, the two sides don't accord with the scale of the deficit. There are differences whether to adopt FOB or CIF, to include the re-exports or not. Then after being revised, the gap becomes much less than before. That is to say, the current trade deficit is not so great as the statistics that the US shows. Section two explains the causes of the bilateral trade deficit. Though the detailed analysis of structural characteristics, regional industrial adjustment, intra-industrial trade and the internal trade in Multinational Corporations, as well as the trade protection policy of US, it is obvious that the existence of the deficit is objective and inevitable, because it tells us that the formation of this trade deficit results from the function of international labour division, resource distribution, and so on. So it needs both sides to cooperate with each other wholeheartedly, and then the condition can be improved. Chapter four, both sides should treat the trade deficit rationally. On the basis of the former chapters, this part focuses on three sections. The first section analyses the influences that trade deficit brings to the two countries and their trade relationship. Since th...