The Basis Of Sino-us Free Trade And Obstacles

Since the 90's of 20th century, the concern about trade deficit, as well as trade friction between U.S. and China began to emerge. As the Obama administration came to power in 2009, trade issue has become a major obstacle of U.S.-Sino relationship. Mean while, call for free trade between these two countries, in the form of free trade agreement (FTA) appears in political and academic circles. In fact, in accordance with the irreversible trend of globalization and regional integration, free trade would be beneficial to U.S. and China which are strongly interdependent on each other in long term.This paper reveals economic and political factors which influence the cooperation of the two countries. In the economic analysis, Australia and India Joint Free Trade Agreement (FTA) Feasibility Study is referred, and the main idea is that in spite of strong complementation and interdependence, the barriers to U.S.-Sino economic cooperation still remain, such as competitive industrial structures, high level of taxes in China, the lack of openness of Chinese service market, and export control of U.S. over specific goods. The political analysis indicates that, although there is improvement of the political relations between U.S. and China, political mutual trust has not been built due to the nature of international system, conflicts of national interests and strategies, and diversity of political cultures between the two countries. The conclusion is that: (1) as a result of certain economic and political factors, there are not yet the conditions for a FTA; (2) political factors play more important roles; (3) national interest and strategy are the most vital factors among all political ones. However, the future of U.S.-Sino economic cooperation is not sealed, but depends on whether the above problems are solved.