China-U.S. Trade Issues
LIBRARY OF CONGRESS WASHINGTON DC CONGRESSIONAL RESEARCH SERVICE
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U.S.-China economic ties have expanded substantially over the past three decades. Total U.S.- China trade rose from 5 billion in 1980 to 409 billion in 2008. Although commercial ties were sharply affected by the global economic crisis in 2009 total U.S. trade with China dropped by 10.5 to 366 billion, China remained the second-largest U.S. trading partner, its third-largest export market, and its biggest source of imports. With a large population and a rapidly expanding economy, China is a huge market for U.S. exporters and investors. However, bilateral economic relations have become strained over a number of issues, including large U.S. annual trade deficits with China the deficit was 266 billion in 2008, but fell to 227 billion in 2009, Chinas mixed record on implementing its World Trade Organization WTO commitments, its resistance to international calls to reform its pegged and undervalued currency system, its relatively poor record on enforcing intellectual property rights IPR, and its extensive use of industrial policies and discriminatory government procurement policies such as proposed indigenous innovation certification regulations to promote domestic Chinese firms over foreign companies. Some observers contend that the business climate in China has worsened over the past few years.
- Economics and Cost Analysis
- Government and Political Science