US Trade with China has grown at a good rate after China's accession to World Trade Organization (WTO) in 2001. America imported 125 billion dollars of Chinese goods in 2002. The percentage of import from China by US comprised 10 percent of total US imports. It is though a minor fraction of 10.4 trillion dollar US economy.
China's growing population of more than 1 billion and their growing economy have always tempted US to make China a member of WTO. China's big consumer market was very alluring for US to start US trade with China .
China is growing as one of the world's leading markets in automobiles. US trade with China is helping on mutual ends. In 2002 America faced a decline in total exports. In spite of that overall decline, exports to China from US steeped up by 14 percent. China on the other hand has forced out United States as the leading importer of steel in the world. By engrossing international steel supply and rising global steel rates, China has emerged as one of the still industry's dearest friend of US.
US trade with China is helping China earn a good lot of money. That very money is once again circulated in US treasury that help in making money for US. This investment earns for US a big interest, which could not have been feasible if they had invested in US private sectors. US face the blessings of low-cost imports and upsurging demand for exports, courtesy free trade policies of China with US.
American consumers are highly benefited by US trade with China . China exports shoes, furniture, consumer electric appliances, clothing at a very cheap rate. Poor and middle class US citizens are happy to purchase them at a discount rate. Office machines, plastic parts, machine parts imported from China are made best use by American producers. This in turn help to keep their product cost at a competitive level in the market.
US trade with China but counts to trade deficit for US. America is inflicted with $200 billion trade deficit with China. The responsibility shoulders on the poor consumers of China. The poor citizens of China are not making wealthy consumers of US imports to China. It naturally leads to minimal exports of US goods to China.
