Trade between the US and China - Essay Example

On the side of China, Barshefsky and Yongtu divulge that China has grown its total stock of foreign and direct investment in the United from zero to 17 billion US dollars, between 2000 and 2012.

4 billion US dollars proceed to the US from China in the year 2012 alone. Interestingly, despite all these humongous gains, China only accounts for less than 1% of the FDI in America. All the benefits and potential for investment growth are also likely to catalyse job creation and catapult the US economy onward (Barshefsky and Yongtu, 31). Conversely, US firms have also built their presence in China. In 2012 alone, the total stock of American FDI in China rose to 70 billion US dollars. Nevertheless, the US government only accounts for 3% of China’s internal FDI.

This is a tiny fraction of what ought to be the case, should market barriers be removed. That the BIT talks are likely to be successful is underscored by the fact that in 2013, the Washington and Beijing Administrations had met and agreed to effect nondiscriminatory treatment of Chinese and American investors in all trade sectors throughout all stages of development- from the pre-establishment stage to the conclusion stage.