In the past few months, the United States has imposed anti-dumping duties on Chinese-made pipes and high tariffs to discourage the import of Chinese-made tires. Likewise, China has reciprocated with government regulations that would grant preference to technologies with intellectual property indigenous to China, excluding the U.S. technology industry at large from selling to the Chinese government. The Chinese government has also imposed tight Internet controls on its 300 million users, blocking popular U.S. sites such as YouTube and Facebook and making it exceedingly difficult for individuals to register their own Web sites.
China’s inadequate level of protection and enforcement of intellectual property rights, questionable government subsidies and misguided technology mandates certainly deserve criticism from the U.S. government, but the Obama administration must reject at trade policy solely focused on enforcement-enforcement-enforcement and move the debate toward openness and dialogue.
Precarious tit-for-tat trade relations between the United States and China has been unfolding against the backdrop of the Obama administration’s uncertain and at time schizophrenic trade strategy.
What could this trade issue between our nations cause to the economy?
China obviously has a comparitive advantage when it comes to building common day items and gives us a lot of goods. If we didn't trade with them anymore, would america be able to find others to trade with to replace china?
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The U.S. is currently very dependent upon China. According to economywatch.com, the U.S. trade deficit to China is "more than $200 billion." (http://www.economywatch.com/international-economic-relations/us-china-economic-relation.html). China also is as much as, if not more of, a superpower than the U.S. Even if China does have less qualms about regulating their own trade and tries to block imports from the U.S., there is not a lot we can currently do to force them to see things our way.
ReplyDeleteClearly has a comparative advantage over us due to the their much larger population and cheaper labor. However, if the U.S were to stop trading with China, we would definitely be able to find others to trade with. Mexico is another country where labor is cheap and the workforce is plentiful. If one door is closed, open another. E
ReplyDeleteThe United States is genuinely dependable on China for cheap goods, if they were to stop exporting goods to the U.S then we would have to find others ways of importing cheap goods from others places. In my own opinion Mexico would be a good second option but it would cost more money due to the insufficient equipment and experience that they have compare to China. China has been manufacturing goods for the U.S for years now and they have some of the best machineries to create goods, more money would have to be spent in training and machinery. E, A
ReplyDeleteIf the U.S. were to lose trade relations with China it would only prove to be bad. China is one of the most booming markets and on top of that, it's still on the rise. Unlike the U.S. which seemingly continues to sink lower. Yes there would be other options, but it's hard to replace trade relations witha country as enormous as China. A
ReplyDeleteChina and India run on the coattails of the American economy. The question should be, if the Chinese didn't have the U.S. to by cheap goods, who would they sell them too? It is not every country in the world who can afford to buy goods. At the end of the day, the Chinese manufacture goods which used to be made in the United States, meaning American companies moved their for the eventual markets and the rise of the Chinese middle class. Therefore if the Chinese grow and stabilize a middle class, their people will be buying goods from American companies, which inevitably brings money back to the United States.
ReplyDeleteThe U.S. is dependent on many countries, but the most dependence probably falls on China. Like we talked about in class, trade makes society better off because counties (firms, people) can specialize in what they have a comparative advantage in. There are some goods that are produced in china for cheap labor that cause them to be cheap and affordable in the United States. Losing trade connections with China would cause the U.S. to trade more with other countries or create more jobs in the U.S. to produce the goods needed. Some cheap goods that were once produced in China could be more expensive on the market because of the more expansive labor in the U.S. compared to China. (A)
ReplyDeleteThe dependance besides what many people already think is without a oubt a two way street. Of cource the most obvious is the Made In China moniker, The United states can import easy to produce items at much lower costs, but china's production dependance on us is in way also as important. Caterpiller stocks rise and fall based upon chinese stimulus measures. why is this? the heavy machinery, from constrution machines to locamotives, to airplanes, to heavy magnetic medical scanners, all are the exports we make in return. So the amount is still unbalanced but take away many of those vital components from the economy (you try and see if you can run china without freight engines?). The technology to produce such equipment is lacking in the asian superpower.
ReplyDeleteHowever there is a another intrest that China has in America's continued growth, our national debt. China is one of the largest holders of united states debt, and a faluire to continue growth and live up to that debt would leave China just as destitue as the U.S.
The Chinese must carefully balace the way that they handle trade in the same manner that we do.
Nice post dear. I really like it Purchasing in China & Logistics help in China
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