The Analysis Of Revitalizing American Manufacturing Strategy's Effects On America's Investment And Trade To China

Since the1980s, with the adjustment of the U.S. model of economic development, a large number of manufacturing industries transferred abroad. The "hollowing out" of this manufacturing has gradually resulted in massive unemployment, and exacerbate the U.S. trade deficit. Subsequently, the financial crisis in2008struck the U.S. model of economic development, therefore, the U.S. government proposed the implementation of reviving manufacturing strategy, hoping that the economic development mode re-turned to the export-driven growth and manufacturing-driven growth. Throughout the previous U.S. investment in industry structure data, it can be found that U.S. investment in China is mainly concentrated on the manufacturing industry. So the implementation of this strategy is bound to have a profound impact on trade and investment relations between China and the United States. Although there quite a few empirical researches at home and aboard about the impact of U.S. direct investment on China-US trade imbalance, but under the background of American revitalizing the manufacturing strategy, the analysis about U.S. investment and trade relations with China is still relatively few, combination analysis of investment and trade is even fewer.By reading a lot of domestic and foreign papers, collecting data, making use of trade creation effect and substitution effect of international investment theory, the paper analyzed the impact of American reviving manufacturing strategy on U.S. investment and trade to China, made some conclusions. The main work of this paper is as follows.1. Introduced the background, policy framework and contents of American reviving manufacturing strategy, described U.S. investment in and trade with China.2. Analyzed how American reviving manufacturing strategy caused capital flow back and high-end industrial transferring status and impact of stagnation.3. Analyzed the impact of trade barriers and trade protectionism on the Sino-US trade relations that caused American reviving manufacturing strategy.4. Making use of trade creation and trade alternative theory to analyze the indirect effects of American reviving manufacturing strategy on American trade with China.The research depicted that American reviving manufacturing strategy will have an enormous impact on U.S. investment in and trade with China, and intensify bilateral economic relations wrestling, especially escalate the fight of manufacturing industry. Finally the paper made summary and proposed the new measures that China should adopt to face this challenge, provided advice on the formulation of China's economic policy.