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The trade relations between China and the U.S - Essay Example

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U.S. –China economic ties in the last three decades have shown signs of growth with the countries boosting ties despite significant…
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The trade relations between China and the U.S
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"The trade relations between China and the U.S"

Download file to see previous pages (Morrison 4). Currently, China’s market for U.S products is estimated to be worth $300 billion judging from the exports from U.S to China and the total sales of U.S firms based in China (Morrison 8). As such, U.S-China trade ties have defied all the odds to remain strong with prospects of increase in trade despite the differences between the two trading partners.
One aspect that makes trade between China and U.S interesting phenomena is the growing trade ties despite the complex relationships marked by major tensions. One of the major challenges that results in these tensions, in the trade is the difference in the market economies of the two countries, which though significant has been overlooked in the developing trade ties between the two countries. While U.S is a capitalist country that favors free economy policies, China has adamantly resisted the move to shift to a free economy market despite the growing pressure from the global markets (Morrison 26). As such, the country still imposes policies that lead to distortion of trade and investments. Some of the areas that have resulted in trade tensions include China’s poor policies in the management of intellectual property rights (Morrison 28). Others as Morrison explains are an increasing tendency where some Chinese firms are involved in cyber espionage against many U.S firms, a move that had threatened relations between the two countries. As such, the growing trade between the two countries has defied such tensions, which may suggest the two counties hold resources of strategic impotence in international trade, which overshadows the existing tensions.
Government intervention in the Chinese market is another concept that affects the trade ties between the two countries, and impacts negatively on U.S. Some of the political factors include the reluctance of China to meet its obligations as set out by the World Trade Organization, use of market policies that force foreign firms to transfer technology ...Download file to see next pagesRead More
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