Analysis Of Sino-us Trade Balance - The Reasons And Rational Countermeasures

The volume of trade between China and America keeps on developing with the frequent exchange activities on politics, economy and culture. Mean-While, the friction between the two is also on the rise. The growing trade imbalance is one of the important reasons why America limits China's exports to America, which negatively affects the Sino-US trade relationship. Starting with the current situation of the trade and trade balance between the two, this essay analyses the reasons why Sino-US trade can cause such a large trade imbalance as well as the effects especially the bad effects on bilateral trade relations. Based on the analysis above, this dissertation also discusses what policy we should adopt when faced with possible unfavourable conditions resulting from trade imbalance.This dissertation consists of 4 parts. The first part deals with the current situation of trade balance between China and America, which lays the base of this essay. The second part is intended to demonstrate the reasons that lead to the trade balance by using political, economic and statistical analysis. It comes to the conclusion that the trade imbalance results from the economic development of both countries rather than either party. The third part states the unfavourable effect on bilateral trade relations. On the whole, trade compitition has brought about the trade imbalance, which is beneficial to both countries, but meanwhile its negative factors cannot be ignored. The fourth part is aimed at how to deal with the trade imbalance. On one hand, both sides should make efforts to reduce the trade imbalance; on the other hand, China has to take respective measures to soften the negative effects.