Analysis of trade between China and U.S Research Paper

U.S. trade when compared with that of China, otherwise known as the People’s Republic of China (PRC) one would notice a great deal of imbalance. This trade imbalance is in favor of China. It is easy to notice the size of the trade deficit between the United States and China. Apart from the size difference, it is also possible to notice the large imbalance that exist between exports and imports from both U.S. and China. Within the United States, exports in terms of agriculture, services and even manufactured products continue to increase. This is effect will see more of the economy of China grow with an increase in population of those within the middle class. The imbalance in terms of trade relationship between the two countries is that there is more imports within the USA from China than what the latter can export (Carbaugh, 2009).
China alone accounts for nearly 26% of the deficit in trade incurred by United States. This has led to great political debates whereby politicians believe that the US had backstabbed its own industrial base in favor of a country that is communist in terms of it industrialization. The domestic market of China however is on the growth which has become a viable market place for the US for its available goods and services. According to Carbaugh (2009), the geographical differences in time and distance has made it economically viable to make these goods in China as some companies cannot serve customers in China from a US base.

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