A Study On China’s Trade And FDI Relations With The USA

With the continuous development of the integration of trade and investment, itsinfluence on the world economy is deepening. China and the United States, as theworld’s most representative largest economies in current economic situation, thecoordinated development of the international trade and FDI is crucial important forboth of them. In China’s case, the robust growth of international trade is the leadingcause of its rapid economic development, as well as its economic policy priority.However, China’s international trade to US meets many obstacles after a period ofrapid growth, which to a great extent restricts the process of China’s economicdevelopment. On the other hand, China’s direct investment to US is still lower thanthe international normal level, with great development potential. It is a feasible wayto stimulate the growth of China’s economy under the background of the overalldownturn of world economy. Therefore, to explore the relationship between China’strade and investment in the United States has a profound practical significance for theguidance of future economic practice.Based on the quantitative and qualitative analysis, combination of data and charts,as well as the international trade and investment integration theory, the paperresearches the relationship between China’s international trade and investment to US.The research route is: current situation analysis-theory predicts-empirical test-policy Suggestions. Firstly, analizing the situations of China’s trade and investment toUS respectively, on one hand, the paper points that China is in a passive position inthe bilateral trade based on China’s trade dependence, which is not conducive toChina’s sustainable development; on the other hand, based on investment intensity, thepaper points that China’s investment into the US is not full, still with greatdevelopment space, and it can provide a new way for economic developing. Secondly,the paper analizes and inspects the relationship between China’s trade and investmentto the United States from both theoretical and empirical aspects. Finally, the paperanalizes the political, law, finance and management factors restricting China’s ;investment to US, and puts forward some corresponding policies and measures.This paper concludes that, in the long run, China’s exports and direct investmentto US is reciprocal causation relationship, the two aspects are of mutual promotionand common growth. But China’s imports from America and direct investment to thatis not reciprocal causation relationship, only can China’s direct investment to USpromotes China’s imports from US. Therefore, we can drive the further developmentof trade through the increase of investment to US. Both the government and theenterprises should actively take measures to create great investment environment,make strategic planning and policy guarantee, targeted to make various defects perfect,in order to expand China’s investment into the US, so that it can furtherly stimulatethe economic growth and to realize the sustainable development of the economy.