Anlysis Of The Relationship Between American FDI In China And Sino-US Trade

China is the largest developing country while American is the largest developed country.The complementary of economy and the mutually beneficial of economic and trade cooperation have been the basis and driving force of the two countries' long-term development of economic and trade relations.Along with the continuous development of global economy,the progress of Sino-US economic and trade relationship is not only the important factor for Sino-US economy relations but also the world.The economic growth of the two countries has been the "twin engine" of the world ecomony.So do a research on the Sino-US economic and trade relationship has an important practical significance.As the main contents of Sino-US economic and trade relationship,how the American FDI in china affect the bilateral trade is deserved to discuss.In order to have a general idea of the current situation of the project,this paper sorts out the theories and empirical articles of the relationship between international trade and international investment at first.Then,having a review of the development history of American FDI in china as well as Sino-US importand export trade.After that we can see that American FDI in china is always associated with Sino-US import and export trade.Through the analysis of the status quo,this paper choose investment motive as the analysis angle for considering the relationship between American FDI in china and Sino-US import and export trade.Before this,we should have a classification of international investment motives and have a brief introduction of the different trade effects they may induce.Then,we should know why American businessman choose china as their foreign investment destination.Through the analysis of industrial distribution of American FDI in china,we can conclude that the main motives of American FDI in china are reduction of cost and grabbing market share.For the reason that motive of reduction of cost will enlarge trade while motive of grabbing market share will decrease trade,sowe should do more search to clarify the relationship between American FDI inchina and Sino-US import and export trade. Conbined with the data of exports to USA by the relevant companies in china and the sales in china by American companies we also analyse the structure of trade goods.At last we get a final outcome that American FDI in china will sharpen the gap of Sino-US import and export trade.For the purpose of reinforcing the credibility of verdict made from investment motive,this paper also used a econometric model.After the econometric analysis of the relevant data,we can get a conclusion almost the same as before.At last,this paper summarized all the conclusions which had made and on the basis put forward some relevant policy suggestions.