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Trade Issues between China and the US

Trade Issues between China and the US

by Leon PierceAugust 3, 2017

China and the US have long been working together and have a bilateral relationship. Recently, the US reportedly has a trade deficit with China and the proposed solution by President Trump gave doubts on the protection of security and economy between the two. Trade relations are quite important for the US but the agreements were not met. The US wants numerous changes regarding China’s policies towards different industries. To begin with, the access to China’s financial services market, reduction of the steel capacity in China and reducing tariffs.

These are to hopefully reduce the trade deficit with efforts from both sides to achieve a balanced trade. Also, the US wants to cut subsidies for state-owned enterprises and removing the Chinese requirements for foreign firms in their country. Evidently, China has a lot to change only to comply with what the US suggests. It is, however, not an instant action since progress and adjustments have yet to be done. The reduction of trade deficit would most definitely take time and needs cooperation between China and the US. It involves more partnerships in trades and services, increase in mutual investment and having a transparent process of transactions that would cover all the exchanges.

Exports to China will be increased as another factor to consider in solving the deficit. In relation, the policies must be changed or updated to cater to the demand for high export rates. Currently, there are regulations to control the exports and with the higher expectations on demand, it will not suit the requirements. High technology items are looked into as a product that will increase the exports. The target plan of action will take one year for China and the combined efforts and contributions are still to be discussed.

Trade, in general, is quite a huge scope between China and the US. To be more specific, industries that have the most attention are agriculture, technology, and finance. There are no initiatives that are raised until now and the US is not in favor of how this issue is going slow. The role of the US in the bilateral relationship with China is to guide and have fairness and reciprocity. Trade will push through to support American workers and businesses. The tension might be intensified at this point but any rash decisions would definitely affect the bilateral relationship in the most damaging way.

A particular product that is under consideration as well as steel. There has been no announcement of this trade and the US is having a suggested increase in tariffs as compliance to national security. While the implementation is still not confirmed, this is crucial for China and the US. The production of Chinese steel hurts the industry for the US even when China has long been the largest manufacturer. The market becomes aggressive so as the countries involved.

The trade relationship between China and the US is not an easy one since it included the most powerful countries. However, the two have long been performing trade and have not stopped since. Even during the Sino-Japanese War where the Rape of Nanking also affected American civilians in China, there has been no bad blood between the two. It is only at the present times where China and the US have become more competitive and assertive in trade.

Any major action from each camp will affect the global market since they are leaders in various industries respectively. Also, trade issues are to be solved since stability is still more essential than the ongoing war on trade. China and the US may be individually powerful but one cannot stand on its own which is the reason why trade is still in the talks; the bilateral relationship is to be protected at all costs.


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Leon Pierce
Leon Pierce