US trade deficit with china
U.S. Trade Deficit With China
Overview
The United States international trade has been thriving over time. As of December 2012, Canada (total trade with U.S. was $616.7 billion), China ($536.2 billion), Mexico ($494 billion), Japan ($216.4 billion), and Germany ($157.3 billion) are the top five trade partners of U.S. In which the closest trade relationship of U.S. is with China (United States Census Bureau.) The United States has been trading with the People of Republic of China for a long time. The trade relationship between U.S. and China had not been grown rapidly until 2001, when China joined the World Trade Organization (WTO). One of the primary reasons China could get into the WTO was the then president Bill Clinton. He encouraged Congress to remove strains of trade relations with China permanently in Spring 2000 because he believed trading with China would benefit U.S.'s economy. At that time, China had the largest population in the world with over 1.2 billion, so former Clinton's confidence in having relationship with China, the largest potential market, would help U.S. export its products as well as services to China, without importing from it and not losing out jobs to China. Finally, with the then president Clinton's support, China joined the WTO in December 2001 (Barker, 200.) After China had became a WTO member, consequences turn out unexpectedly. Contrary to the former president Clinton's and supporters' predictions (before the WTO accepted China to join its organization,) the United States keeps consuming goods more and more from China as well as a vast of U.S. jobs loose to China while exporting to China is just a small portion compare to its import (Barker, 2004.) In 2012 U.S. imported $425.6 billion (18.7% total U.S. import) in goods from China while it exported goods to this country only $110.6 billion (7.1% total U.S. export), given the trade gap of $315 billion which is 6.8% increased in trade deficit compare to 2011
Overview
The United States international trade has been thriving over time. As of December 2012, Canada (total trade with U.S. was $616.7 billion), China ($536.2 billion), Mexico ($494 billion), Japan ($216.4 billion), and Germany ($157.3 billion) are the top five trade partners of U.S. In which the closest trade relationship of U.S. is with China (United States Census Bureau.) The United States has been trading with the People of Republic of China for a long time. The trade relationship between U.S. and China had not been grown rapidly until 2001, when China joined the World Trade Organization (WTO). One of the primary reasons China could get into the WTO was the then president Bill Clinton. He encouraged Congress to remove strains of trade relations with China permanently in Spring 2000 because he believed trading with China would benefit U.S.'s economy. At that time, China had the largest population in the world with over 1.2 billion, so former Clinton's confidence in having relationship with China, the largest potential market, would help U.S. export its products as well as services to China, without importing from it and not losing out jobs to China. Finally, with the then president Clinton's support, China joined the WTO in December 2001 (Barker, 200.) After China had became a WTO member, consequences turn out unexpectedly. Contrary to the former president Clinton's and supporters' predictions (before the WTO accepted China to join its organization,) the United States keeps consuming goods more and more from China as well as a vast of U.S. jobs loose to China while exporting to China is just a small portion compare to its import (Barker, 2004.) In 2012 U.S. imported $425.6 billion (18.7% total U.S. import) in goods from China while it exported goods to this country only $110.6 billion (7.1% total U.S. export), given the trade gap of $315 billion which is 6.8% increased in trade deficit compare to 2011