On Sino-US Trade Relations

Since establishment of the PRC in 1949, since the reform and opening-up policy was implemented, and especially since China joined WTO, there are, in addition to contradictions, cooperation and complements in Sino-US trade. With different political and cultural backgrounds, economic development levels, and national profits between China and US, contradictions seemed to exceed cooperation in trade between the two countries. However, it is unassailable that China and U.S. are complementing and cooperating with each other. That is where the subject of this paper came from.The paper consists of the lead-in (Chapter 1) and the body (6 chapters).In this paper, study on Sino-US trade relationship in the background of economic globalization. This is because Sin-US trade relationship got further developed at the end of 20th century and the beginning of 21st century, with trade contradictions between them became intensified at the same time. This is exactly the period when economic globalization developed quickly. Therefore, we take economic globalization as the start to study Sino-US trade relationship.To work over economic globalization, we start from economic globalization theories. We take"economic globalization theory, macro economic theory and economic balance theory of open economy"as the theoretic foundation of economic globalization.Seen from the economic globalization practices, it brought many contradictions and problems as it pushed forward world economic development. As a result, the world is now seeing fast boosting economic globalization, and also seeing economic nationalism, economic regionalism and economic"re-nationalization"in their ways at the same time. In addition, global economic unbalance became a more and more significant issue during the process of economic globalization. The favorable trade balance of China and unfavorable trade balance of U.S. attracted wide attentions, and became a critical point of Sino-US trade contradictions.We studies global economic imbalance not only from the extent, but also from its nature. That is, we take global economic imbalance as the flag identifying the forming of a new global economic situation, that is, multi-polarization.We analyzed the inevitability of the favorable trade balance of China and unfavorable trade balance of U.S. First based on the description on the"production– distribution– exchange - consumption"relationship of Marx, we give analysis on the favorable trade balance of China and unfavorable trade balance of U.S. from the Political Economics point of view. Secondly, we give analysis on the three global trends emerged since 1980s, that is, international industrial transfer, transfer from 1st and 2nd industries to 3rd industries inside a country, and virtual economy development exceeding that of real economy.We put forward two basic principles on how to evaluate the external economic imbalance of a country. The first is to evaluate not only through goods, or current account, but through its entire balance of payments. That is, the balance of current account and capital account together. The second, external economic imbalance of a country results from internal economic imbalance of the country. Therefore, to correct external economic imbalance of a country, the focus shall be internal economic imbalance of the country.After sub-prime mortgage crisis occurred in U.S., there was extensive discussion in the academic field. In this paper we discuss from the aspect of imbalance of U.S. economy and global economy. The conclusion is that the root reason for the sub-prime mortgage crisis in U.S. is the unbalance inside U.S. It is the consequence of the consuming pattern in U.S., and resulted from the severe deviation between financial economy, virtual economy and real economy. Besides, we studied how the potential risks hidden in sub-prime mortgage of U.S. evolved into the crisis, and how the crisis spread to countries and areas tightly associated with U.S. economy and finance via trade, financial and currency channels, eventually resulting in the global-affecting financial crisis.In the end of the paper, we give theoretical discussion on a critical issue in Sino-US trade relationship, that is, RMB rate, with rate theory of Marx as the theoretical guide. At the same time, we discuss, from the game theory, how RMB rate takes the game play role with China as a party, U.S. and other countries (mainly U.S.) as the other party and IMF as the 3rd party.The thinking of the paper is the figure below:...