The Economic Interdependence between China and the U.S

Economic interdependence

Chinese-American Economic Trade

In the years that have passed has emerged as the biggest exporter of goods all over the world and the United States’ second-largest trading partner after Canada. Despite the country poor but developing, China has emerged in the market as the one of the largest trade surpluses in human history, which created economic problems for the United States.

This Bilateral trade have led to the loss of American manufacturing jobs that reduced wages for semiskilled workers and have had a catastrophic effect on some communities that are dependent on low-end manufacturing jobs. These negative effects in the U.S. have triggered the presidents to build campaigns against trading.

China has warned that the trade confrontation that happened before the year ended could damage one of the biggest ties after the President, Donald Trump, criticized the economic ties between these two countries.

In an interview with the U.S. President he stated that he wouldn’t carry through on an earlier pledge to designate China a currency manipulator “on day one of a trump administration” and “trigger a series of actions” that would lead to tariffs on Chinese goods.

Many economists say that there is no justification for the designation, because China’s currency now is not undervalued and China’s central bank has spent nearly $1 trillion of the country’s foreign reserve trying to boost the currency.

The way they see it China can respond in different ways, it could sue the U.S. in the World Trade Organization. Or take more drastic actions sabotaging the trade ties, by letting the yuan drop even further, blocking its imports, and making it difficult for the U.S. Companies that are in China.

China is already suffering from a too-strong dollar, which hurts the U.S. economy because it limits possible investment.


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