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Imbalance of Trade between U.S. and China

- How has the imbalance of trade impacted the economy of China?

- How has it impacted the U.S. economy?

- Should the U.S. try to balance its trade with China so that we only import from that country as much as we export to it?

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Solution Preview

Trade with China has been disadvantageous to the United States since 2001 up to the present. Based on the data below, average annual U.S. Exports to China was only $55.436 while imports from that country were a towering $257.07. This means that for the past decade US imports vis-à-vis China amounts to 4.6 times.

Impact to Chinese Economy

This trade imbalance against the United States has brought unprecedented economic growth in China's economy. China's GDP growth ranged from 10.54% in 2001 to 23.06% in 2011.

Impact to U.S. Economy

The GDP growth rate of the United States pales in ...

Solution Summary

The solution discusses the imbalance of trade between the United States and and China.