Sino-US Trade Imbalance From The Angle Of International Industry Transfer

The Sino-US trade imbalance problem is always the focus of the economic and trade relationship between China and United States. The U.S. Department of Commerce counted that China had been the biggest trade deficit country of United States from 1994 while the Ministry of Commerce of China counted that it was from 2000. According to the statistics of Chinese Customs, the United States had a trade deficit of 6.3 billion dollars to China for the first time in 1993. The amount had risen to 144.2 billion dollars in 2006. At the same time, the statistics by United States rose from 22.8 billion to 232.55 billion dollars. The rapid growth of trade balance between China and United States has affected the development of the trade relationship, which has been attached importance by the two governments.There are many reasons that lead to Sino-US trade imbalance such as the statistics methods of the two countries, Hong Kong's entrepot trade (original producing area principle), and United States' export restriction to China, economic policy of the two countries, global industrial restructuring and transferring. Since late 1990 international industry transfer has been more and more important. Industry transfer leads to global work division and transfer of deficit. Today, with the emergence of globalization of economy, industry transfer is an important reason that leads to Sino-US trade imbalance.This paper uses the following two research methods: theory with practice, the positive analysis with normative analysis. Beginning with the present situation of trade imbalance between Sino-US and the theories of international industry transfer, the paper analyzes how international industry transfer influences the amount and structure of Sino-US trade imbalance. The paper also analyzes the most representative industry: electromechanical industry and proposes countermeasures of how to improve the trade imbalance.The paper is divided into six chapters. Chapter one is an introduction, which mainly elaborates the background, significance of the research and content, innovation of the paper. Chapter two introduces the present situation of Sino-US trade imbalance, summarizes the opinions of American and Chinese scholars about the problem. Chapter three reviews the theories of international industry transfer home and abroad. Chapter four and five are the emphases of the paper. Chapter four analyzes the effects of international industry transfer played on Sino-US trade deficit to explain how international industry transfer influences the amount and structure of Sino-US trade imbalance from a general view. Chapter five chooses the electromechanical industry to analyze, which further demonstrates international industry transfer is the deep reason of Sino-US trade imbalance. The last chapter summarizes the paper and proposes the countermeasures of how to solve the Sino-US trade imbalance.