| With the opening-up policy,the economy in China has been developing rapidly and foreign trade has also entered in the fast lane.Foreign trade has promoted China become the world’s second largest economy.The total trade volume between China and the United States has increased several hundred times over past 40 years.The United States has become China’s largest export market,and it is playing an increasingly important role in China’s trade.With the tightning of trade cooperation,Sino-US trade dependence continues to rises further while the trade conflicts and frictions also emerge frequently.As of May 2019,the Trump administration initiated trade conflicts with various justifications and imposed punitive tariffs on about $250 billion of imports from China.How the trade conflict impact the Chinese economy,and how to find a positive response are urgent issues.After study the history of Sino-US trade relations for the past 40 years,by summarizing the historical trade data and the distribution of product structure,this paper concludes that the U.S.trade deficit is one of economic factor and China’s future development strategy threatens the core competitiveness of the U.S.in the global value chain is another political factor leading to the trade conflicts.Through a series of trade and economic data and charts as well as China’s economy and trade status to conclude that foreign trade has a positive correlation with economic growth,thus points out that Sino-US trade conflict has a negative impact on the Chinese economy.In order to prove the point,this paper analyzes by using Solow growth model with trade,it proves that the foreign trade affect economic growth by affecting exports,technological advances,employment and industrial structure.This paper also use Eviews software to analyze the changes among import and export trade volume of China-US,China-Japan,China-EU as well as the China’s GDP growth in the past 20 years.The results shows that Sino-US trade has a significant impact on China’s GDP compared with the other two economies and prove negative impact of Sino-US trade conflicts from opposite side.At last,this paper gives “two internal" and "two external" suggestions.Externally,promote bilateral consultations between China-US,opening further to the outside world to diversify the export market.Internally,focus on talent training,accelerate industrial upgrading and adjust the development model of foreign trade. |
