Research And Describe The Trade Between USA and China

The Trade between USA and China
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The Trade between USA and China
Abstract
The paper undertakes the sound theoretical research to examine the existing trade ties between USA and China. The topic highlights different concerns and opportunities for the bilateral trade explicitly confirming whether trade deficit between China and USA is a barrier to exhaust the opportunities and trade advantages for both nations successfully. The research is essential for the future research on the best engagement terms in bilateral trade. The secondary study with regression analysis reveals that no relationship exists between US-China trade deficit and RMB exchange rates. However, the trade deficit surrounds the manufactured products, machinery as well as the existing comparative advantage of China over the USA. The previous researchers reveal that the bilateral trade between the USA and China benefits the nations in both short and long-term with limited concerns on RMB exchange rates and trade deficits. The research was limited to the theoretical aspect and secondary analysis hence the information could not sufficiently be used for generalization. Future studies should focus on the different variables about friction on bilateral trade primarily on the dollar variations and market prices for various commodities between USA and China.
Background
US-China partnership in trade is a bilateral tie that exists between the largest developed and the largest developing nations. Both nations have unique national conditions with differences in development on trade. The nations have different market economic fields and maturities. Furthermore, both nations exhibit differences in division of labor, openness, paths of developments and statuses. The current trade relationship between USA and China supports over 2.6 million jobs in the USA. The different sectors that benefit from the trade partnership include Chinese companies with the USA with the expansion of the China as a middle-class nation that possesses a great number of consumers. Besides, USA companies grab numerous opportunities with the new market niche full of broad consumer base hence there is more employment and economic growth. Furthermore, the USA as a partner to China outperforms other nations with fewer ties of such kind .[US-China Business Council. Understanding the US-China Trade Relationship. USCBC (2017). Accessed on 29 November 2017 from /reports/understanding-us-china-trade-relationship]
Recent economic data shows that China purchases over $ 165 billion worth of products and services from the USA as at 2015. Such transaction accounted for 7.3 percent of the US exports with 1 percent improvement on the total US economic output. The high-value products such as cars, construction equipment, semiconductors, and trucks that the USA sells China counter the loss of manufacturing jobs resulting from the trade deficits. Besides, the financial services and export business that the USA sells total to $ 6.7 billion as at 2014 and $ 7.1 billion in 20151.
Regarding the bilateral trade partnership between the USA and China, both nations have their unique characteristics that result in competitive advantage for each other. There has been ...