The Reflux Of Manufacturing To USA And Its Influences On The Sino-US Trade

After the global financial crisis, the American economy was hit severely, and the reflections about the existing economic model have been initiated. The substance economy, especially high-grade manufacturing is being taken again seriously. The Obama Government promulgated a series of favorable policies and measures in order to revive economy, and to stimulate the economy of stable growth and increasing employment, through reviving local manufacturing industry, developing high-grade industries, and turning the focus from virtual economy to substance economy, and attracting manufacturing enterprises back to USA. So Mr Obama proposed a strategy of reviving domestic manufacturing, in order to get rid of the plight of the weak economy, through supporting domestic manufacturing enterprises and attracting foreign company,. The American plan of manufacturing reflux has close ties with Sino-US trade and mutual investment between the two countries. The American manufacturing reflux has emerged its trend, which should have important influence on the economic development of China inevitably.Firstly, this paper analysis the manufacturing performance before and after the implementation of the United States’plan, as before plan, the American manufacturing industry has some phenomenon as follows:the contribution rate of manufacturing industry to economy declines, the balance of payments imbalances, industry hollowing out. Secondly, the US related policy system concerning the strategy of,manufacturing regression has been collated, and based on this, a large amount of data is used to analyse the positive effects of the strategy implement on the development of the US manufacturing, such as a decline in the unemployment rate, the growth of manufacturing output, the backflow of parts of enterprise abroad, etc. Thirdly, the detail analysis has been made on the reasons of American manufacturing reflux, which contains the comparison of labor cost and land logistics costs between China and USA, the structure and prices of energy supply, the demand factors of product market, and the further analysis of the effects of US strategic polices for manufacturing reflux. Then the analysis has been made on the effects of reflux on Sino-US trade and the mutual investment of the two countries, such as, reliving the imbalance of Sino-US trade, increasing the trade friction of the two, and weakening the competitive power of China’s exports to the US market, etc; in mutual investment area, the investment of US in China slowed down, and China’s investment in the United States on the high-grade industry become more difficult. Finally, the policy suggestions are made to keep the competitive advantage of manufacturing industry, and enhance the comprehensive strength of China, by speeding up the process of industrial upgrading, verifying export markets strengthening the innovation ability, and starting the talent reserve strategy, etc.