Sino-us Trade: The Imbalance Between Causes And Countermeasures

The former part of 21century is the very important historic era forChinese nation to realize prosperity and peaceful rise, and it is also thekey epoch for China to change from a big country to a powerful one. Asthe only super power, US own very important influence on Chinesehistoric course. Chinese and American trade is the important link ofSino-US relationship, and it's also one of the most important traderelations of China. Chinese and America trade has big impact fordevelopment of China's economy and the whole society. However, forsome reasons, there is serious trade imbalance between China and USwhich harmed healthy development of trade relation, even harmedSino-U.S. foreign relationship. It is very necessary for us to investigatedeeply, to find out the reason and to table a proposal.Sino-U.S. trade, which began 200 years ago, has been developingrapidly since the reformation and opening up. And now it is one of themost important trade relationships in the world. With the tradedeveloping rapidly, bilateral trade imbalances are becoming moreprominent than ever before, unfortunately there were no commonremarks on scale and reasons of imbalance between US and China.Some American politicians claimed that it was devaluation of RMB thatcaused trade imbalance, however, the fact is not the case. Complaintsabout exchange rate have profound political background, exchange rateis not so important to imbalance. The real reason of the imbalance is thewhole imbalance of US national economy, which caused tradeimbalance for the whole US, furthermore caused the trade imbalancebetween China and US. Chinese and American different division ofinternational industry chains and the US strict export control to Chineseboth had an important impact on this issue. This thesis pointed out thatthe aim of resolving imbalance is maximizing the benefit of trade,instead of absolute equality of trade sum. Both sides should resolve thetrade imbalance jointly, particularly;the United States. US should firstresolve the imbalance of its domestic supply and demand;in addition,US should relax and eventually remove export control. China shouldalso make efforts to resolve this issue such as strengthening intellectualproperty rights protection and expanding import from America. Themost important measure China should make is to change engine ofeconomy development from foreign trade to domestic demand. Byanalyzing commodity structure of Sino-US trade and other factors, thisthesis proposed that it is difficult to resolve the issue completely in theshort term, however, in the long term, Sino-U.S. trade imbalance will beresolved finally due to the continuous development of China's economy.The Sino-US trade imbalance is huge and complicated. The maincontribution of this thesis is to supply an explanation to the imbalanceby analysis from all angles. This thesis adopts a lot of latest and usefuldata and information from foreign websites. However, for disadvantagesof the author's knowledge and research ability, this thesis has certainlydeficiency and error,for example, analysis to the imbalance of USnational economy is not in-depth.