Disproportionate US-China Trade Policy
In the recent decades there have been unfavorable trade policy between the United States and China. The trade between the United States and China has been disproportionate. The price of the imported goods have varies in the ratios of 1:3 and 1:4 (Dingli). Additionally, the import tax levied by the United States is much lower than the one imposed by the Chinese government on the imported goods from the United States (Morrison, 6). From the United Sates point of view China has adopted to the mercantilism trade system that has continued has continued other nation especially America (Wang, 168). From the above analysis of the trade policies between China and America it is quite obvious that the current trade policies between the United States and China benefits the Chinese more than the American companies. However, with Donald Trump becoming the president of America, there is likelihood of the major changes in the trade policy relationship between the two countries. PLAGIARIZED SAMPLE-ORDER YOUR PAPER NOW
Some of the critical issues that the current president of the United States should be focused to address include stealing of the intellectual property, manipulation of the Chinese currency, unfair subsidizing of the chinse industries, low wages, and flooding of cheap China-made goods in the American markets. These are the serious issue that have had negative impacts on the US firms both operating in the home markets and in China. Therefore, it is the duty of the United States to ensure it establishes sound trade policies that will be advantageous to both countries. This memo suggests some of the approaches that can be adopted to create the United Sates-China sound trade relationship.
Laying more emphasis on the intellectual protection rights.
China has been accused by many nations including the United States for copying and modifying other nations’ products and selling them at the cheaper price. More so, this has been the situation that majority of the United States firms have been facing. Therefore, it is a noble idea for both countries, United Sates and China to enter into agreement to build strong strategies of reducing violation of the intellectual property rights.
Trade negotiations with China.
The United States can overcome the problem disadvantageous trade policy with China by excluding China from its free trade policy. However, this cannot solve the trade relationship between the two nations. Therefore, America should initiate trade negotiations with Chinese government that will promote and trade between the two nations.
Seeking Trade Liberalization with China.
The service products of the United Sates can be explained from the comparative advantage theory point view. America, is endowed with service exports which enable the country to earn a surplus of over $200 billion annually (Seattle Times). However, some of China trade barriers falls in the service sector. This has greatly contributed to the potential loss to the United States service exports. Therefore, with the Chinese trade liberalization the United States will largely benefits from the service exports such as software development, professional and expert consulting services, transportation, engineering, insurance and banking. PLAGIARIZED SAMPLE-ORDER YOUR PAPER NOW
Dingli, Shen. The Future of China-US Relations in the Trump Era. 4 February 2017. Website. 16 April 2017.
Morrison, Wayne M. China-U.S. Trade Issues . Washington : Congressional Research Service , 2017. Document.
Seattle Times. How to Increase Trade between China and the United States. 10 November 2016. Website. 16 April 2017.
Wang, Dong. “China’s Trade Relations with the United States in Perspective.” Journal of Current Chinese Affairs 39.3 (2010): 165-210. Document.