Is normalization of U.S. trade relations with China beneficial to the U.S.?

Expert Solution

As the relationship between China and the US is quite strong but still complex. Both the countries have a relationship of economic cooperation and have positive political relations but some issues also exist. Relations between the two countries have generally been stable with some open conflict. but now a days they both have mutual political and economic stability. If we talk about US , it always does business with most of the its allies under PNTR{ permanent normal trade relations} . Between 1974 and 2000, China's relations with the US were not granted this permanent normalized status. The normalizing of business or trade relations with China has been controversial in the years since. While it has allowed larger US firms to benefit from exporting to China but it has also affects smaller firms particularly smalll business that were unable to compete on price with cheap imports. in short normalization of US trade realtions with China will be beneficial to the US as cutting of the trade with China would further isolate the largest nation in the world, damaging the ability of other nations to influence Chinese policy.China is expected to continue to be one of the fastest growing major economies, creating growth opportunies to American companies. China has become the 3rd largest destination for American goods and services.In this way it is good for us to be in trade retaions with China.

Rahul Sunny answered 2 years ago

USA – China Trade Relations Over the past decades China has consistently run a trade surplus...

USA – China Trade Relations Over the past decades China has consistently run a trade surplus with the USA, accumulating very large holdings of US Treasury bonds. Please, discuss the pros and cons of this situation from the perspective of China! What is the role of the exchange rate (between the US and Chinese currency) in this relationship? Classical economists would argue that the trade surplus would make the Chinese currency gain value and erase competitive gains of China –...

A) Topic : Elaborate the China-U.S. Trade War and the impact to China Business Environment as...

A) Topic : Elaborate the China-U.S. Trade War and the impact to China Business Environment as follows: i) Briefly elaborate the trade practices and their effects which the current U.S. President, Donald J. Trump claims are unfair such as the growing trade deficit, the theft of intellectual property, and the forced transfer of American technology to China from 2010 to present. ii) Analyze the outcomes of the China-U.S. Trade War and U.S.’s subsequent policies impacts to current China Business Environment...

The benefits of the trade war on the U.S. and China.(better to be specific)

Consider the trade relations between the United States and China. Assume the leaders of the countries...

Consider the trade relations between the United States and China. Assume the leaders of the countries believe the payoffs to alternative trade policies are as follows. If both countries impose low tariffs, then both countries will gain $60 billion. If both countries impose high tariffs, then both countries will gain $40 billion. If one country imposes high tariffs, the country that has high imposed tariffs will gain $50 billion and the country that imposes low tariffs will receive $20 billion....

The Tributary System was implemented by Imperial China to conduct diplomatic and trade relations. The Belt...

The Tributary System was implemented by Imperial China to conduct diplomatic and trade relations. The Belt and Road Initiative was launched in 2013 to increase global influence of People’s Republic of China. Using ONE country in Central Asia as example, compare merits and deficiencies of the above two programs. In view of the current economic situation, how likely will the Belt and Road Initiative be successful? Why? (500 words)

What trade model will best explain the U.S /Chinese trade relations? Why? Identify the winners and...

What trade model will best explain the U.S /Chinese trade relations? Why? Identify the winners and losers from trade.

Suppose the U.S. is engaging with China in a discussion of trade policies. The Chinese diplomat...

Suppose the U.S. is engaging with China in a discussion of trade policies. The Chinese diplomat explains to their U.S. counterpart that labor in China is less expensive than in the U.S., so the U.S. consumer would benefit from cheaper products produced in China. Also, since the U.S. has a highly skilled labor force, capable of making the capital intensive goods that the Chinese consumer desires, both countries would benefit from trade. The U.S. diplomat counters this argument, stating that...

The trade war between the U.S. and China has been in the headlines for sometimes. The...

The trade war between the U.S. and China has been in the headlines for sometimes. The trade war comes as a shock and significantly affects countries and companies across the globe. Discuss the impact of the trade war on Malaysia at least in the following ways. 1. Explain the mechanisms of the trade war and its current state. 2. Analyse how the trade war has been affecting Malaysia. 3. Make a prediction on the impact of the trade war on...

name a U.S. firm confronting the negative consequences of tariffs from the U.S.-China trade war. In...

name a U.S. firm confronting the negative consequences of tariffs from the U.S.-China trade war. In your discussion of the first article, you must explain the strategies employed by the firm to manage the negative effects of trade tariffs

Under the leadership of President Bill Clinton, in 2000 the U.S. government normalized trade relations with...

Under the leadership of President Bill Clinton, in 2000 the U.S. government normalized trade relations with China. This paved the way for China’s becoming a member of the World Trade Organization in 2001. Clinton maintained that this was good for America since China would become a major customer for American-made products and political relations would improve for the governments of China and the United states. However, American labor unions worried about additional competition coming from poorly paid Chinese workers. Do...

Question