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China's Trade with the United States and the World
Summary
As imports from the People's Republic of China (PRC) have surged in recent
years, posing a threat to some U.S. industries and manufacturing employment,
Congress has begun to focus on not only access to the Chinese market and
intellectual property rights (IPO) protection, but also the mounting U.S. trade deficit
with China as well as allegations that China is selling its products on the international
market at below cost (dumping), engaging in "currency manipulation," and exploiting
its workers. The 109th Congress has introduced several bills that would impose trade
sanctions on China for not revaluing its currency or for engaging in other acts of
unfair trade, while the Bush Administration has imposed anti-dumping duties and
safeguards against some PRC products and pressured China to revalue its currency
and remove non-tariff trade barriers.
China runs a trade surplus with the world's three major economic centers - the
United States, the European Union, and Japan. Since 2000, the United States has
incurred its largest bilateral trade deficit with China ($162 billion in 2004). In 2003,
China replaced Mexico as the second largest source of imports for the United States
(worth $196 billion in 2004). China's share of U.S. imports was 13% in 2004,
although this proportion still falls short of Japan's 18% of the early 1990s. The
United States is China's largest overseas market and second largest source of foreign
direct investment on a cumulative basis. U.S. exports to China have been growing
rapidly, although from a low base. In 2004, China replaced Germany and the United
Kingdom to become the fourth largest market for U.S. goods.
In the past decade, the most dramatic increases in exports from China to the
United States have not been in labor-intensive sectors but in advanced technology
sectors, such as office and data processing machines, telecommunications and sound
equipment, and electrical machinery and appliances. China's exports to the United
States are taking market share from other Pacific Rim countries; however, in absolute
terms, exports from all East Asian countries have continued to grow.
China is purchasing heavily from its Asian trading partners - particularly
machinery, electronic components, and raw materials for manufacturing. China is
running trade deficits with Taiwan and South Korea and has become a major buyer
of goods from Japan and Southeast Asia. In 2004, China replaced the United States
to become Japan's largest trading partner.
This report provides a quantitative framework for policy considerations dealing
with U.S. trade with China. It provides basic data and analysis of China's
international trade with the United States and other countries. Since Chinese data
differ considerably from those of its trading partners (because of how entrepot trade
through Hong Kong is counted), data from both PRC sources and those of its trading
partners are presented. Charts showing import trends by sector for the United States
highlight China's growing market shares in many industries and also show import
shares for Japan, Canada, Mexico, the European Union, and the Association for
Southeast Asian Nations (ASEAN). This report will be updated bi-annually.
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Lum, Thomas & Nanto, Dick K. China’s Trade with the United States and the World, report, September 13, 2005; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc821639/m1/2/: accessed April 25, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.