The United States exports to China

A description of patterns and trends in the 20th century


The united States-China relations are referred to as Sino-American relations in international relations. The two countries are neither friends nor enemies; the US government considers China as a competitor in some issues and a friend in others. Currently, the United States has the largest economy and China following second. If the current trends continue, China will overtake the United States in the next one century. At the beginning of the 20th century, China was in turmoil and facing multiple threats from the major powers at the time
. The U.S. Secretary of state at the time developed the ‘open door policy’ to deter the partition of china by the major powers, which would deny the United States access to the Chinese market and resources. The major powers, such as France, Germany, Britain, Russia, and Japan granted consent; however, competition for ports, railroads, and mining rights continued unabated (Keller, Ben, & Carol, 358).
The trade between the two countries picked in 1979 after the signing of the mutual most-favored- nation (MFN) treatment. The total trade between China and the United States was two billion (includes both exports and imports) in the same year. According to Kadanoff, in 1980, China ranked as the 23rd and 45th largest as a destination for exports and a source of imports respectively (Kadanoff, 1395). The total value of goods and services exported to China by the United States in 1980 total 3.8 billion dollars. This gave the United States a surplus of 2.7 billion dollars. In 1985, China neutralized the trade balance and both the exports and imports of the United States stood at 3.9 billion dollars. The value of exports to china from the United States has been increasing from 1980. By the turn of the century in 2000, the United States export to the china was 16.3 billion dollars (DeVoss, 50). The commodities that the United States exports to China include transport equipments, chemicals, computers, other electronics, crops, waste papers, and scrap. The United States is number five source of imports for China currently.
Discussion of significance of the patterns and trends
 For the better part of the 20th century, the United States and china did not have any trade relations. In 1950, china and the United States fought in Korea. This resulted in a breakup of all relations, including trading and diplomacy. Trade between the two countries resumed in 1972 and later increased to substantial levels in 1980 after the reestablishment of diplomatic relations in 1979 (Kadanoff, 1392). The U.S.-china economic relations have expanded to a substantial level in the last two decades of the 20th century and the first decade of the 21st century. Currently, china is the second largest trading partner to the United States after Canada. China is the second largest export market for the United States and the biggest source of imports for the United States. The United States earns an estimated 250 billion dollars annually from exports to china. Some of the United States major companies, such as General Motors, make more sales in China than in the U.S (Keller, Ben, & Carol, 347).
The Sino-American relations strengthen the American economy and create decent jobs for Americans. As the economy of China is growing, so is the size of the middle-class and the standards of living in the country. China will continue playing a paramount role in the United States export market as the population in the country gains more wealth and demand more goods from the wide selection of goods available in the U.S. exports are an integral part of the U.S. economy and China is a major player in major export sectors. The United States producers and companies are competitive and increasingly important in the international market, especially in growing markets (DeVoss, 52).
An analysis and explanation of these patterns and trends
The United States is the largest and one of the most dynamic countries in the world. In the recent past, the United States economy has experienced zero to negative economic growth because of the recent global economic crisis. However, since 2010, the United States has experienced slow economic growth. The earlier year of the 20th century saw minimal trade between China and the United States. The lack of a stable government because of the internal conflicts within the China is to blame. Later after the formation of the Chinese republic, the United States refused to recognize the government in Hong Kong instead recognizing the one in Taiwan as the legitimate government. During the cold war, the United States revised it policy toward China, as it would constitute a strategic partner against the soviets. The United States recognized the government in Hong Kong in 1972 and formalized a diplomatic relationship in 1979 (U.S. Exports, 23).
After the formalization of the relations, trade between the two countries skyrocketed. The strategic location of U.S. enables the companies and business in the country to access China and other countries in the world with ease. The liberal Chinese trade laws and the high trade openness ratio encourage U.S. companies to trade with Chinese companies. China has a population of more than one billion people. This coupled with the low living standards provide a source of cheap labor for U.S. companies. According to Wang, Most of the factories in China are involved in intermediary value addition and assembly of electronic components into devices (Wang, 145). As China endeavors to climb up the value addition chain, it is importing more electronic components for the United States for assembly in government owned factories.
Projections about future patterns in the short-term and long-term
The value of exports to China is projected to increase in the near and distant future; however, Canada will remain the number one importer of the United States goods even in the distant future. The export of industrial machinery and transportation equipment to China is projected to increase as China tries to move up the value chain. Countries such as China are making phenomenal investments in the infrastructure sector and this is expected to continue in the future. The trade of infrastructure related goods will increase to meet the demand from China and other developing countries where China is heavily investing in the infrastructure sector. The demand for aviation equipment will also increase as China continues to open up for business and explore opportunities in other countries, especially in sub-Saharan Africa and Latin America (May & John, 265).
The Chinese economy is growing at an average rate of 7.5% per year and is expected to sustain this growth in the near future. The economic growth and the large volumes of foreign investment in the country is creating wealth for the population and resulting in a large and more affluent middle class. A stable government, huge amount of mineral resources, and huge market potential makes China an attract destination for U.S. exports. The United States produces a wide selection of goods, which the population in China with their increased purchasing potential is going to demand more, especially luxury products (U.S. Exports, 17). The increase in the number of people living in the cities and the urban centers is going to create more demand for an American-like lifestyle. This is going to see an increase in American products as American companies, such as Mc Donald exploit this markets.

 Works Cited
DeVoss, David. "U.S. Exports." World Trade 11.11 (1998): 50-2. ProQuest. Web. 1 Nov. 2013.
Kadanoff, Leo P. "Imports and Exports." Journal Of Statistical Physics 111.5/6 (2003): 1391-1396. Academic Search Complete. Web. 1 Nov. 2013.
Keller, Wolfgang, Ben Li, and Carol H. Shiue. "Shanghai's Trade, China's Growth: Continuity, Recovery, and Change since the Opium Wars." IMF Economic Review 61.2 (2013): 336-378. EconLit with Full Text. Web. 1 Nov. 2013.
May, Ernest R, and John K. Fairbank. America's China Trade in Historical Perspective: The Chinese and American Performance. Cambridge, Mass: Committee on American-East Asian Relations of the Dept. of History in collaboration with the Council on East Asian Studies, Harvard University, 1986.
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Wang, Chi. The United States and China Since World War Ii: A Brief History, 2013.