Welcome to free paper download website

Economic other

You are here: Home > Economics > Economic other > content

Analysis of the U.S. trade deficit with China increased impact on the U.S. analysis

Author: SunLei JiangZeFeng From: www.yourpaper.net Posted: 2010-06-05 15:23:56 Read:
Paper Keywords: trade deficit unemployment economic growth
Abstract: In recent years, the United States that its trade deficit with China increasing lead workers increased unemployment, economic growth affected the sound come and go, but the analysis can be found between the U.S. trade deficit with China increased its economic growth and unemployment change and not necessarily linked; addition, although the U.S. trade deficit in the name, but in fact the U.S. trade deficit with China a lot of profit.
In recent years, the increasingly close Sino-US trade relations, bilateral trade volume increasing, but at the same time, the U.S. trade deficit with China continues to increase, the consequent is not conducive to the smooth development of Sino-US economic and trade relations.
That the trade deficit with China to the U.S. economy adversely affect the United States view profile
From 1978 to 2006, the Sino-US trade balance has undergone tremendous changes, although the two sides statistics specific amount is not consistent, but the U.S. trade surplus to deficit and growing is an indisputable fact. According to U.S. statistics, in 1978 the U.S. trade surplus of $ 500 million, to the 2006 deficit of $ 32.5 billion in 1978; According to Chinese statistics, the U.S. trade surplus of 500 million U.S. dollars, to 2006, The U.S. trade deficit with China was $ 44.3 billion. With the U.S. trade deficit with China continues to increase, more and more American politicians and business people began to think that the U.S. unemployment rate to rise, economic growth affected, and even national economic security is threatened.
All those who held this view, the U.S. Democratic Senator Charles.Sehumer the most eye-catching. According to the Chinese Ministry of Commerce Policy Research and Statistics: Sehumer July 16, 2003, the first issue of RMB exchange rate, he believes that China intends to maintain the low exchange rate of the RMB, their exports cheaper, so that the United States, especially STAIN State The manufacturing industry has lost many jobs; September 9, 2003, their joint more than a cross-party group submitted a new bill to 1586, China's undervalued currency motion is not only the U.S. manufacturing sector since March 2001, a decrease of 260 million jobs culprit, also resulted in the flow of services and engineering employment in China. The rise of China as a big manufacturing country, based on the economic security of the United States for the price. 180-day period will give the Ministry of Finance officials to negotiate with China, If not, the Chinese people throughout products impose a 27.5 percent tariff partnership.
Second, the U.S. trade deficit increased its economic situation there is no obvious contact
Foreign trade multiplier theory is that the trade deficit tends to cause the recession, rising unemployment. As a result, many people believe that the increase in the U.S. trade deficit with China is not conducive to economic growth in the United States, exacerbated by unemployment in the United States. However, some scholars affirmed the contribution of trade deficit of U.S. economic growth. Robert G. Murphy (1999) trade deficit called a friend of the United States, that the trade deficit will help to prevent the U.S. economy from overheating, inhibition of rising inflation.
In fact, the changes in its economic growth in the U.S. trade deficit and there is no apparent connection. 1992-2005, the U.S. trade deficit as a share of GDP rose from 0.6% to 5,7%, but this period real GDP growth of about 3% (September 11 terrorist attacks and other emergencies caused by the United States in economic growth in 2001.2002 serious decline except); addition, the trade deficit share of GDP in 1990 to 1.4%, real GDP growth was 1.9%, trade deficit share of GDP fell to 0.5% in 1991, but a 0.2% real GDP growth in the United States.
In addition, between 1990 and 2005, the trade deficit share of GDP from 1.4% up to 5.7%, but the unemployment rate in the United States except in 1992 and 1993, the basic 4% - 6 % hovering around, and the U.S. dollar as the trade deficit to GDP improve soil liters, and in some years, with the increase in the trade deficit to GDP, the unemployment rate also declined. From 1992 to 2000, the trade deficit share of GDP rose from 0.6% to 3.8%, but the unemployment rate dropped from 7.5% to 4% a 2001 and 2002, the U.S. unemployment rate of increase was mainly U.S. economic growth slow down the results. Therefore, the current U.S. trade deficit increased its economic position.
Third, the trade deficit with China increased unemployment and the U.S. manufacturing workers are not necessarily linked
Competition from Chinese products is not the cause of the main reasons Americans are unemployed
Many Americans believe that competition from Chinese products is the main cause of the unemployed Americans, but with the facts, such as the former U.S. Trade Representative Charlene Barshefsky said: "The current U.S. 80% of the unemployed population of the manufacturing, trade, especially trade between China and the United States has nothing to do so% of U.S. manufacturing sectors and a substantial increase in production efficiency, only 20% of the trade and other factors. "
Since the 1960s, most of the United States and other developed countries, the manufacturing sector, the proportion of total employment decreased rapidly, a phenomenon known as "de-industrialization". Manufacturing employment in the United States the proportion of total employment in 1965 to reach 28% of the peak value, the declining trend. "De-industrialization" Naosuo En (Rowthorn, 1997, 1999) pointed out mainly due to domestic factors, such as demand patterns shift from manufactured goods to services, the productivity of the manufacturing sector relative service greatly improved, as well as the relevant manufactured goods prices dropped significantly. Manufacturing competition from developing countries, external factors contribution to the de-industrialization of less than 1/5. China should not cause the United States outsourcing unemployment responsible
Also, some people think that the United States transferred to the domestic industry (outsourcing) has led to the United States increased unemployment, thus China to grab the jobs of American workers, but it should be pointed out , the Chinese government and people did not force U.S. companies to invest in China, is the voluntary choice of the United States in order to reduce costs, American workers if you want to complain, you should complain to these companies because these companies abandoned American workers. Overall, the United States benefit from outsourcing is huge, Feenstra (1998) pointed out that the process of "outsourcing" is precisely the way to achieve comparative advantage, but also conducive to the development of high-tech industry in the United States, help to improve the level of wages of skilled workers in the United States. Of course, the U.S. government should focus on redistribution of income in the profit of "outsourcing" to adjust the income gap between skilled and unskilled workers brought by the "outsourcing".
Fourth, the U.S. trade deficit with China in profitability analysis
From the above, the increase in the U.S. trade deficit did not cause trouble to the United States economic growth or employment problem, the trade deficit increases and economic growth go hand in hand, and the United States gain a lot of revenue.
Meet U.S. consumption, and promote economic growth in the United States
The premise of the U.S. dollar as the international credit-based currency, the U.S. trade deficit in the process output U.S. dollars for foreign goods and services, and then by the dollar return, the United States cheap foreign financing, in order to ensure the level of domestic investment and foreign investment levels. Extreme, the paper obtained foreign goods and services, to ensure the country's investment and economic growth.
(2) a significant increase in Chinese exports to the U.S. also can promote an increase in employment in the United States, income growth
The significant increase in Chinese exports to the U.S. also promote an increase in employment in the United States, and income growth. Published in 2006 by the US-China Business Council assessment
In trade and investment on the economic impact report that, in the long run, substantial and sustainable benefits, by 2010, the U.S. gross domestic product will be because of the China trade and investment from the United States-China trade and investment increase disposable income to an annual increase of $ 1000 every family in the United States, the service industry can also be a corresponding increase in distribution and financial sectors 50 million jobs. Overall, the increase in trade and investment with China will be the capacity of the U.S. economy out, efficiency, employment and wages continued to increase, a positive impact.
A significant increase in Chinese exports to the U.S. to facilitate the lives of Americans, Americans reduce spending
Cheap "Made in China" greatly facilitate and enrich the lives of the American people, and to some extent reduce their daily expenses. According to the World Bank report pointed out, such as the United States imports from countries other than China the same goods, American consumers need to increase each year expenditures of $ 14 billion. According to Morgan Stanley 2004 estimates, the products imported from China every year and saved American consumers more than 600 billion dollars in expenses.
4 U.S. companies investing in China a huge profit
From China investors to measure the distribution of economic benefits between China and the United States, we can not just trade in goods, but also the trade and investment combined with the overall interests of. According to the McKinsey Global Institute estimates that U.S. multinationals overseas subsidiaries operating income in 2002 amounted to $ 270 million, which is 3.9 times of the year exports to the United States, they create profits for the parent company in the U.S. up to $ 34 billion. American companies are also very profitable, according to a survey conducted by the American Chamber of Commerce in China in 2004, over 3/4 of the earnings of U.S. companies in China, 42% of the profit margins of the companies in China to its global profit margins, it is estimated that in China was a net profit of 35 billion.
 1/2    1 2 Next Last
Please consciously abide by Internet-related policies and regulations.
Tips: Log in to comment, the user name to enter comments directly from your personal space, so that more friends to meet you.

Economic other latest papers

Sponsored Links

Economic other papers Ranking

Latest free papers

Sponsored Links

Top