Should US continue trade with China Essay Example | Topics and Well Written Essays - 1750 words

Should US continue trade with China - Essay Example In my opinion, United States should continue to trade with China. Many challenges that the U.S economy faces are usually domestic in nature, however, it is still important for investment to take place and the two states to continue trading. Thesis Statement: While the trade relationship between China and United States is not smooth, the benefits reaped are far much worth. History of U.S and China Trade relationship Lovett, William, Alfred Eckes, and Richard Brinkman. U.S. Trade Policy: History, Theory and the Wto. New York: M.E. Sharpe, 2004. According to Lovett, William, Eckes and Brinkman, former British Colonies were the giants when it came to international trade. As the authors stated earlier America, was only one of the states which participated in trade. At that time, the economy of the American British colonies was only considered to be extractive. Most of the commodities such as fish, lumber among other commodities were only traded within the empire. Different types of trade and manufacturing were all prohibited in the British Empire; hence, people were required to purchase goods from Asia via the England route, rather than participating in direct trade with Asians. There was colonial unrest because most of the Americans were excluded from what most termed as successful China Trade. On page 36 of the book, the authors assert that the demand for goods from China grew even after the Revolution. The authors state that in 1850s, trade between Britain and its international partners from Asia grew. By 1890s, as the authors assert, Britain already owned more than half of all the trade exports. When the Americans saw that the Great Britain made so much profit from trade, the Americans became more than interested in trade and wanted to make such profits on their own. The Americans started trading directly with China, and with the volume being comparatively small, China was viewed as a crucial player in this trade. Chai, Joseph. An Economic History of Modern Chin a. New York: Edward Elgar Publishing, 2011. Print. According to Chai, trade between China and other trading partners like the Americans declined in 1850s. Chai argues that the international environment only became favorable for the economy growth for a state like China in the year 1979 to 2009. The author points out on page 239 that the U.S and China trade troubles did not begin recently but years ago. Chain points out that the growing conflicts between China and states like the U.S grew because the foreign exchange from China’s reserve was growing due to trade. As a result of this, China also became a trade giant when it overtook the U.S and other European states and became one of the largest exporters. Chai affirms on page 239 that despite China making great profits from the booming trade, Europe was still a leader because it offered different states a market that was more receptive for goods from America. The U.S foreign trade grew enormously, but China’s trade only remained at a favorable but constant level. According to Chai, China is there today because it maintained an exchange rate that was fixed. This is the exchange rate that has led to the emerging symptoms of currency undervaluation. In the year 2008-2009, China accounted for about 39% of the total trade gap with the U.S. This issue, according to Chain was one of the contributors of China being