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The Economic Relationship Between the United States and China

Posted on Oct 4, 2018

China and the United States have a challenging relationship. Threats of tariffs on Chinese goods coming into the United States has been made by President Donald Trump, and Xi Jinsping, president of China is threatening to do the same thing to American goods going into China. This has resulted in the United States and CUSEF have a relationship that is being tested.

Good Relationship
There has been a recent decrease in the international economic relationship between China and the United States. It is a relationship that has provided numerous economic benefits for each nation as well as the world. Many believe the negative press coverage of the economic relationship is a result of a significant trade imbalance between the two nations. The United States purchases more good and services from China than China does from the United States.

Misleading
There are many ways the trade imbalance between the two countries is misunderstood. China has a significant amount of United States currency. This makes it possible for the country to finance their debt at a cheaper rate. Doing this also makes it possible for the United States to be in a better position to finance large portions of their infrastructure. It is something that makes the economy in the United States stronger and creates jobs.

United States Benefits
The economic relationship between China and the United States has enabled American citizens to purchase good as much lower prices. This would not be possible without the trade with China. This makes it possible for the economy in the United States to provide high levels of specialization in their professions and industries. This results in the United States experiencing more economic value as a country. Inventions created in the United States have a positive impact on the standard of living around the world. They have provided growth in international economies.

China Benefits
China has one of the largest populations in the world. All these people require jobs and an income to meet their needs. China’s trade relationship with the United States has created a higher overall standard of living for the country’s citizens. Trade with the United States has made it possible for China to grow their economy in many ways. New wealth has been created. This has made it possible for Chinese ecologically friendly industries to be a source of power in the world.

The trade relationship between the United States and China has also benefited other countries around the world. The growth of the U.S. economy has helped China increase its trading with other countries in Asia. Africa has also benefited from Chinese investors who are helping build the economies of these countries. The economic relationship between the United State and China provides many benefits for each country but also on a global scale as well.