U.S.-China Trade History 1980-Present
U.S.-China Trade History 1980-Present
Introduction
U.S.-China relations became a breakthrough in history in 1979 when both countries came together and diplomatically ensued a positive political and economic future. A small but well beginning started in 1980 when U.S.-China trade was $2 billion, which was the summation of both imports and exports. At the time China was the United States’ 48th largest source of imports and 23rd largest export market. U.S.-China trade in the past 30 years has dramatically increased ever since. U.S.-China trade in 1981 rose from $5 billion to $503 billion in 2011. As of now China is the United States’ second biggest trading partner (behind Canada), third biggest export market (Canada being first, Mexico second), and number one source of imports. In 1985 the U.S. trade deficit with China was $0 billion with U.S. imports equaling U.S. exports to China. Being that U.S. imports from China are higher and are now increasing more than U.S. exports to China; the U.S. merchandise trade deficit has risen from $10 billion in 1990 to $296 billion in 2011.
Today China currently now owns the title of having the single highest U.S. trade balance deficit (with the combined world economy leading ahead China). With OPEC (Organization of Petroleum Exporting Countries) being second the highest, and the European Union with its 27 members being third; their combined U.S. trade balance deficit being $237.8 billion is still no match for China’s nearly $296 billion in today’s economy. China is trading more than ever and has become a big player in the global export market. At their peak of economic growth, cheap labor is their primitive and the key to what makes their exports so attractive to foreigners. The United States, once the world’s leader of exports is now the third largest global exporter following behind Germany and China. The United States and other advanced countries are now struggling to compete with China and those other developing nations who
Introduction
U.S.-China relations became a breakthrough in history in 1979 when both countries came together and diplomatically ensued a positive political and economic future. A small but well beginning started in 1980 when U.S.-China trade was $2 billion, which was the summation of both imports and exports. At the time China was the United States’ 48th largest source of imports and 23rd largest export market. U.S.-China trade in the past 30 years has dramatically increased ever since. U.S.-China trade in 1981 rose from $5 billion to $503 billion in 2011. As of now China is the United States’ second biggest trading partner (behind Canada), third biggest export market (Canada being first, Mexico second), and number one source of imports. In 1985 the U.S. trade deficit with China was $0 billion with U.S. imports equaling U.S. exports to China. Being that U.S. imports from China are higher and are now increasing more than U.S. exports to China; the U.S. merchandise trade deficit has risen from $10 billion in 1990 to $296 billion in 2011.
Today China currently now owns the title of having the single highest U.S. trade balance deficit (with the combined world economy leading ahead China). With OPEC (Organization of Petroleum Exporting Countries) being second the highest, and the European Union with its 27 members being third; their combined U.S. trade balance deficit being $237.8 billion is still no match for China’s nearly $296 billion in today’s economy. China is trading more than ever and has become a big player in the global export market. At their peak of economic growth, cheap labor is their primitive and the key to what makes their exports so attractive to foreigners. The United States, once the world’s leader of exports is now the third largest global exporter following behind Germany and China. The United States and other advanced countries are now struggling to compete with China and those other developing nations who