The Analysis Of The Influence Of The Trade Development Between China And USA On China-USA Terms Of Trade

With the development of economic globalization, foreign trade plays an important role in the development of a country. One of the important indexs to measure the development of a country’s foreign trade is Terms of Trade, this paper is centered on China-USA terms of trade. After the establishment of diplomatic relations, the trade between China and USA has developed rapidly, and the scale of trade has expanded more than one hundred times. In2012, the trade volume between China and USA reached＄484680000000, the amount of money which China exports to USA was＄351790000000and the year-on-year growth rate was of8.41%, at the same time, the amount of money which China imports from USA was＄132890000000, and the year-on-year growth was8.79%. The United States has become China’s second largest trade partner, the largest export market and fifth largest import source. The two countries’resources are highly complementary. China has abundant labor source and broad market, with the shortage of capital, technology, etc. As one of the world’s developed economies, the United States of America has adequate capital and advanced technology and management skills, with high labor costs. In the bilateral trade between China and the United States, China exports labor-intensive products to the United States, and imports capital-intensive products from the United States. The trade structure is also strong complementary, and trade dependence degree is becoming more and more deep. China and USA occupy important positions in each other’s foreign trade.Based on the reality of trade development between China and the United States, this paper used Pasche index formula to calculate China-USA NBTT and ITT from1993to2011, and found that during this period, the NBTT showed a downward trend, which meant the price terms of trade between China and USA was in a worsening situation, at the same time, ITT showed a rising trend, which meant the income terms of trade had become better. We also found that the primary products’and industrial manufactured products’prices and income terms of trade changed similarly. Then aimed at the present situation of China-USA trade conditions, the paper expounded in detail China’s export strategy, customs, economic growth, export commodities’ structure, exchange rate, FDI, trade friction and so on. We carried on the theoretical analysis, then combined with the actual situation in China to explain the possible impact of these factors have on China-USA terms of trade, with the relevant data. Besides, we put forward recommendations to improve China-USA terms of trade.Finally, the paper predicted the change trade of China-USA terms of trade. The factors, which affected China-USA NBTT and ITT, is formed by trade policies between China and the United States and historical conditions in the long term. This trade pattern is formed in short duration of time. After considering the interests of all parties, we think it’s difficult to change the unfavorable factors rapidly. In fact, these unfavorable factors won’t change greatly. Therefore, we think in the future, China-USA NBTT will keep getting worse, and China-USA ITT will keep becoming better, but the speed of NBTT’s deterioration will slow down.