ALAGOA-Hans-Assignment 43 - Assignment 3 PUBLISHED

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Current Trade Issues in the Literature: Focus on Trade Issues/Developments between China & the U.S., including the Implication of China & United States Trade Volumes on

Worldwide Trade

Hans E. Alagoa

MONARCH UNIVERSITY

14 September, 2015

Abstract:

According to UNCTADstat (2014a), the United States of America, with a Federal

Presidential Constitutional Republic government, has a population in the order of 326.4

million, a land area of 9,156,640 sq. km, a Nominal Gross Domestic Product (GDPNominal) of

$17.53 trillion in 2014 (with a year on year growth rate of 2.38%), and a Nominal Gross

Domestic Product per Capita (GDPNominal per Capita) of $53,702 in 2014; is the largest

economy in the world. The United States boasts of Total Exports in 2014 of $1,621 billion,

Total Imports in 2014 of $2,413 billion, and a Human Development Index (HDI) of 0.914,

considered ‘Very High’.

The People's Republic of China, as shown on Table 1, with an Authoritarian Socialist

government, has a population in the order of 1,393.8 million, a land area of 9,388,211 sq. km,

a Nominal Gross Domestic Product (GDPNominal) of $10.07 trillion in 2014 (with a year on

year growth rate of 7.4%), and a Nominal Gross Domestic Product per Capita (GDPNominal per

Capita) of $8,193 in 2014; is the second largest economy in the world. The People's Republic

of China’s Total Exports in 2014 was $2,342 billion, Total Imports in 2014 was $1,959

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billion, and China has a Human Development Index (HDI) of 0.719, considered ‘High’.

(UNCTADstat, 2014b).

China and the United States of America have extensive and trade and economic ties.

(Morrison, 2015). China is currently the second-largest trading partner of the United States;

its third-largest export market; and its biggest source of import. (Morrison, 2015; UNCTAD

stat, 2014a; UNCTAD stat, 2014b).

Current trade issues, with focus on the issues and developments between China and the

United States, is discussed in this essay. In the process, such topics as the worldwide

implications of the Import and Export trade volumes, into and out of both China and the

United States, and the balance of trade of the China-U.S. trade are also discussed.

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LIST OF FIGURES & TABLES

FIGURES

1 Exports: Worldwide, China, and U.S.; 2007-2014 1a Export Percentages: All Others, China, and U.S.; 2007-2014 2. Imports: Worldwide, China, and U.S.; 2007-2014 2a Import Percentages: All Others, China, and U.S.; 2007-2014

3 China’s Exports to, Americas, Asia, and Europe 2007-2014

4 China’s Exports to, Africa, and Oceania 2007-2014 5 %ages of China’s Exports to Africa, Americas, Asia, Europe, and Oceania, 2007-2014 6 China’s Exports to Africa, Americas, Asia, Europe, and Oceania, 2014 7 China’s Imports from, America, Asia, and Europe, 2007-2014 8 China’s Imports from, Africa, and Oceania, 2007-2014 9 %ages of China’s Imports frm Africa, Americas, Asia, Europe, & Oceania, 2007-2014 10 China’s Imports from, Africa, Americas, Asia, Europe, and Oceania, 2014 11 U.S.’s Exports to, to America, Asia, and Europe, 2007-2014 12 U.S.’s Exports to, Africa, and Oceania, 2007-2014 13 %ages of U.S.’s Exports to, Africa, Americas, Asia, Europe, and Oceania, 2007-2014 14 U.S.’s Exports to, Africa, Americas, Asia, Europe, and Oceania, 2014 15 U.S.’s Imports from America, Asia, and Europe, 2007-2014 16 U.S.’s Imports from Africa, and Oceania, 2007-2014 17 %ages of U.S. Imports frm Africa, Americas, Asia, Europe, and Oceania, 2007-2014 18 U.S.’s Imports from Africa, Americas, Asia, Europe, and Oceania, 2007-2014 19 U.S.’s Imports from Africa, Americas, Asia, Europe, and Oceania, 2007-2014 19a %ages of Product Group Classes in U.S. Exports to China, 2007-2014 20 Percentages of U.S. Exports to China, 2007-2014

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21 U.S.’s Imports, and U.S. Imports from China, 2007-2014 21a Percentage of U.S. Imports to China, 2007-2014 22 China’s Exports, and China’s Exports to U.S., 2007-2014 22a Percentages of China’s Exports to U.S., 2007-2014 22b Percentages of Product Group Classes in China’s Exports to U.S., 2007-2014 23 China’s Imports, and China’s Imports from the U.S., 2007-2014 23a Percentages of China’s Imports to U.S., 2007-2014 23b Percentages of Product Group Classes in China’s Imports to U.S., 2007-2014 24a U.S. Exports to and Imports frm China, and Trade Deficit, 2007-2014 24b China’s Exports to and Imports frm U.S., and Trade Surplus, 2007-2014

TABLES

1 Country Comparison: China vs. United States

2 Worldwide Exports, Exports from China, and Exports from the U.S., 2007-2014

3 Worldwide Imports, Imports to China, and Imports to the U.S., 2007-2014

4 China’s Exports to Africa, America, Asia, Europe, and Oceania, 2007-2014

5 China’s Imports from Africa, America, Asia, Europe, and Oceania, 2007-2014 6 United States’ Exports to Africa, America, Asia, Europe, and Oceania, 2007-2014 7 United States’ Imports from Africa, America, Asia, Europe, and Oceania, 2007-2014 8 United States’ Exports, and United States’ Exports to China , 2007-2014 8a U.S. Exports to China, & Export Structure by Product Group Classes, 2007-2014 9 United States’ Imports, and United States’ Imports from China, 2007-2014 9a U.S. Imports to China, & Import Structure by Product Group Classes, 2007-2014 10 China’s Exports, and China’s Exports to the United States, 2007-2014

10a China Exports to U.S., & Export Structure by Product Group Classes, 2007-2014

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11 China’s Imports, and China’s Imports from the United States, 2007-2014

11a China Imports frm U.S., & Import Structure by Product Group Classes, 2007-2014

12 China-U.S. Imports, Exports, and Trade Balance, 2007-2014

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Table 1 Country Comparison: China vs. United States

Category

People's Republic of China

United States of America

Population 1,393,800,000 326,415,000

Government Authoritarian Socialist State Federal Presidential

Constitutional Republic

Currency Renminbi (yuan) (¥) United States dollar ($)

GDP (nominal) 2014 $10.07 trillion $17.53 trillion

GDP (nominal) per capita 2014

$8,193 $53,702

GDP (PPP) 2014 $18.97 trillion $17.53 trillion

GDP (PPP) per capita 2014

$13,801 $53,702

Real GDP Growth Rate 2014 7.4% 2.38%

Total Exports (2014) $2,342 billion $1,621 billion

Total Imports (2014) $1,959 billion $2,413 billion

HDI 0.719 (High) 0.914 (Very High)

Source: UNCTADstat, International Monetary Fund, given in U.S. Dollars

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2.0 Implications of China & U.S. Trade Volumes on Worldwide Trade

The United States and China being the first and second largest economies in the world, each

with very large trade volumes, as shown in Table 1, have the potential of influencing trade

and other issues in the world. This is, at least in part, due to their large trade volumes, with

one another, and with the rest of the world. The extent to which the trade volumes of China

and the United States with the rest of the world, influences the rest of the world, is therefore

worth discussing. This will be done in the following sections by comparing China’s trade

volumes and the trade volumes of the U.S. with the volume of trade worldwide; and by

determining where in the world the trade volumes of China and the trade volumes of the U.S.

come from and go to.

Determining what percentages of the world’s total export and imports that constitute the total

exports and imports of China and the U.S., gives an indication of the possible extent that a

change in policy or other factor in China or the U.S., may negatively or otherwise, affect

trade between either of the economies and the rest of the world. In the same manner

determining what percentages (and by extraction what volumes) of the total trade of China or

the U.S. that originates or are sent to various parts of the world, gives an indication of where

in the world may be impacted by such factors as just mentioned.

China being an Emerging market is, as discussed in Alagoa (2015), highly sought after by

investors for the prospect of high returns, but such investments are fraught with risks when

compared with investments in more advanced economies such as the United States. As such

between China and the U.S., China is the more likely source of policy changes or other

factors that may negatively or otherwise affect trade between it and the rest of the world.

During the week of 9th to 15th of August 2015, such a change in policy resulted in the

devaluation of the Renminbi (yuan), the currency of China, three days in a row and, as Inman

(2015) and Gough (2015) noted, the most obvious effect it could have on global trade is that,

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with a less valuable currency, the prices of exports from China will cost less thus increasing

the demand for them; imports into China will cost more to the Chinese and other users of the

Reminbi (Yuan) and drive down the demand for imports into China from other parts of the

world. Such is the possible impact on global trade of a change in policy, and thus the

importance of determining the possible locations in the world that may be impacted, and to

what degree they may be impacted, by such changes in policy or other factors.

While trade is most directly related to the economic factors that are considered in a PEST

analysis, usually the first step in a Country risk analysis; Alagoa (2015) and Rugman &

Collinson (2006) suggest that developments in economic factors have strong influences over

political, social, and technological factors, as espoused by the PEST framework. As such

trade issues, with their associated developments in economic factors, can potentially have far

reaching implications to the life of an economy that is being affected by such economic

developments.

2.1 Worldwide Trade Volumes, China and U.S. Trade Volumes

Here a comparison will be made between worldwide trade volumes and the trade volumes of

China and the United States, between 2007 and 2014.

2.1.1 Worldwide Exports, and China and U.S. Exports

As indicated on Table 2 and Figure 1a, which show the total export volumes from all of the

world’s economies, the total exports of China, and the total exports of the U.S, from 2007 to

2014; China’s total exports as a percentage of the Worldwide total exports, ranged from a low

of 8.71% in 2007, to a high of 12.41% in 2014. Table 2 and Figure 1 show China’s Total and

the Worldwide Total Exports to be 1,220,059,668 thousand U.S. dollars and 14,003,700,791

thousand U.S. dollars, respectively in 2007; and 2,342, 342,011 thousand U.S. dollars and

18,882,143,567 thousand U.S. dollars respectively, in 2014. China’s export trade volumes, at

least between 2007 and 2014, did not exceeded 12.41% of worldwide export volumes, and

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any impact on worldwide trade, caused by policy or other changes or factors in China, on

worldwide export volumes, can be expected to be limited to this order of magnitude. In

addition, when compared with worldwide export trade volumes, 8.7% may appear small;

however the change in policy that resulted in the devaluation of the Yuan, the currency of

China, and the resulting demand for the exports of China, may drastically increase 8.7% of

worldwide export volumes to potentially much more.

Table 2 and Figure 1a, show that the total exports of the U.S. as a percentage of the

worldwide total exports, between 2007 and 2014, ranged from a low of 8.06% in 2008 to a

high of 8.59% in 2014. Table 2 and Figure 1 show the Total Exports of the U.S. and the

Worldwide Total Exports to be 1,299,898,877 thousand U.S. dollars and 16,136,419,252

thousand U.S. dollars, respectively in 2008; and 1,622,657,461 thousand U.S. dollars and

18,882,143,567 thousand U.S. dollars respectively, in 2014. The export trade volumes of the

U.S., at least between 2007 and 2014, did not exceeded 8.59% of worldwide export volumes,

and any impact on worldwide trade caused by policy changes or other factors in the U.S., on

worldwide export volumes, can be expected to be limited to this order of magnitude.

Except for a Year-on-Year decrease between 2008 and 2009 for worldwide Total Exports,

China’s Total Exports, and Total Exports for the U.S., there has been Year-on-Year increases

in all three between 2007 and 2014.

2.1.2 Worldwide Imports, and China and U.S. Imports

As indicated on Table 3 and Figure 2a, which shows the total import volumes of all of the

world’s economies, the total imports of China, and the total imports from the U.S, from 2007

to 2014; China’s total imports as a percentage of the Worldwide total imports, ranged from a

low of 6.75% in 2007, to a high of 10.41% in 2014. Table 3 and Figure 2 show China’s Total

and the Worldwide Total Imports to be 956,115,448 thousand U.S. dollars and

14,162,512,557 thousand U.S. dollars, respectively in 2007; and 1,958, 021,301 thousand

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U.S. dollars and 18,809,926,692 thousand U.S. dollars respectively, in 2014. The import

trade volumes of China, at least between 2007 and 2014, did not exceeded 10.41% of

worldwide import volumes, and any impact on worldwide trade caused by policy changes or

other factors in China, on worldwide export volumes, can be expected to be limited to this

order of magnitude.

Table 3 and Figure 2a indicate that the total imports of the U.S. as a percentage of the

worldwide total imports between 2007 and 2014, ranged from a low of 12.33% in 2011 to a

high of 14.24% in 2007. Table 3 and Figure 2 show the Total Imports of the U.S. and the

Worldwide Total Imports to be 2,017,120,776 thousand U.S. dollars and 14,162,512,557


18,809,926,692 thousand U.S. dollars respectively, in 2014. The import trade volumes of the

U.S., at least between 2007 and 2014, has not exceeded 14.24% of worldwide export

volumes, and any impact on worldwide trade caused by policy changes or other factors in the

U.S, on worldwide export volumes, can be expected to be limited to this order of magnitude.

Except for a Year-on-Year decrease between 2008 and 2009 for worldwide Total Imports,

China’s Total Imports, and Total Imports for the U.S., there has been Year-on-Year increases

in all three between 2007 and 2014.

2.2 Destinations and Origins of China and U.S. Trade

Continuing the discussion of the possible impacts on the rest of the world of the large Trade

Volumes of both China and the U.S., the destinations of the Exports from China and the U.S.,

as well as the origins of the Imports into China and the U.S. will now be determined. To

cover the trade between China and the U.S. with the rest of the world, the world has been

subdivided into; Africa, Americas, Asia, Europe, and Oceania.

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2.2.1 China’s Exports to Africa, Americas, Asia, Europe, and Oceania

Table 4 and Figure 5, which show China’s exports and the percentages of its exports to

Africa, the Americas, Asia, Europe, and Oceana, from 2007 to 2014; indicates that the

percentage of the China’s exports to Africa, ranged from a low of 3.06% in 2007, to a high of

4.52% in 2014. Table 4 and Figure 4 show China’s Total exports and China’s exports to

Africa to be 1,220,059,668 thousand U.S. dollars and 37,375,142 thousand U.S. dollars,

respectively in 2007; and 2,342, 342,011 thousand U.S. dollars and 105,839,240 thousand

U.S. dollars respectively, in 2014. China’s export trade volumes to Africa, at least between

2007 and 2014, was never been above 4.52% of China’s Total export volumes, as such any

impact on Africa caused by policy changes or other factors in China that directly affect

China’s trade exports, can be expected to be limited to this order of magnitude.

Table 4 and Figure 5 indicates that the percentage of the China’s exports to the Americas,

ranged from a low of 24.01% in 2014, to a high of 25.20% in 2010. Table 4 and Figure 3

show China’s Total exports and China’s exports to the Americas to be 2,342,343,011

thousand U.S. dollars and 562,392,455 thousand U.S. dollars, respectively in 2014; and

1,577, 763,751 thousand U.S. dollars and 397,584,823 thousand U.S. dollars respectively, in

2010. China’s export trade volumes to the Americas, at least between 2007 and 2014, was

never been above 25.20% of China’s Total export volumes, as such any impact on the

Americas caused by policy changes or other factors in China that directly affect China’s trade

exports, can be expected to be limited to this order of magnitude.

Table 4 and Figure 5 indicates that the percentage of the China’s exports to Asia, ranged

from a low of 46.38% in 2010, to a high of 51.38% in 2013. Table 4 and Figure 3 show

China’s Total exports and China’s exports to Asia to be 1,577,763,751 thousand U.S. dollars

and 731,845,646 thousand U.S. dollars, respectively in 2010; and 2,209, 007,280 thousand

U.S. dollars and 1,134,951,525 thousand U.S. dollars respectively, in 2013. China’s export

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trade volumes to Asia, at least between 2007 and 2014, was never been above 51.38% of

China’s Total export volumes, as such any impact on Asia caused by policy changes or other

factors in China that directly affect China’s trade exports, can be expected to be limited to

this order of magnitude.

Table 4 and Figure 5 indicates that the percentage of the China’s exports to Europe, ranged


China’s Total exports and China’s exports to Europe to be 2,209,007,280 thousand U.S.

dollars and 405,073,972 thousand U.S. dollars, respectively in 2013; and 1,430,693,066

thousand U.S. dollars and 343,695,842 thousand U.S. dollars respectively, in 2008. China’s

export trade volumes to Europe, at least between 2007 and 2014, was never been above

24.02% of China’s Total export volumes, as such any impact on Europe caused by policy

changes or other factors in China that directly affect China’s trade exports, can be expected to

be limited to this order of magnitude.

Table 4 and Figure 5 indicates that the percentage of the China’s exports to Oceania, ranged

from a low of 1.73% in 2007, to a high of 2.19% in 2012. Table 4 and Figure 4 show China’s

Total exports and China’s exports to Oceania to be 1,220,059,668 thousand U.S. dollars and

21,103,724 thousand U.S. dollars, respectively in 2007; and 2,048, 782,233 thousand U.S.

dollars and 44,872,025 thousand U.S. dollars respectively, in 2012. China’s export trade

volumes to Oceania, at least between 2007 and 2014, was never been above 2.19% of China’s

Total export volumes, as such any impact on Oceania caused by policy changes or other

factors in China that directly affect China’s trade exports, can be expected to be limited to

this order of magnitude.

As Figure 5 shows most clearly, between 2007 and 2014, China’s Exports were distributed

approximately thus; 50% to Asia, 25% to the Americas, 20% to Europe, 3% to Africa, and

2% to Oceania.

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2.2.2 China’s Imports from Africa, Americas, Asia, Europe, and Oceania

Table 5 and Figure 9, which show China’s imports and the percentages of its imports from

Africa, the Americas, Asia, Europe, and Oceana, from 2007 to 2014; indicates that the

percentage of China’s imports from Africa, ranged from a low of 3.80% in 2007, to a high of

6.23% in 2012. Table 5 and Figure 8 show China’s Total imports and China’s imports from

Africa to be 956,115,448 thousand U.S. dollars and 36,359,944 thousand U.S. dollars,

respectively in 2007; and 1,949,992,315 thousand U.S. dollars and 115,658,756 thousand

U.S. dollars respectively, in 2013 the year with the highest trade imports into China from

Africa between 2007 and 2014. The percentage of China’s import trade volumes from Africa,

at least between 2007 and 2014, never exceeded 6.23% of China’s Total import volumes, as

such any impact on Africa caused by policy changes or other factors in China that directly

affect China’s trade imports, can be expected to be limited to this order of magnitude.

Table 5 and Figure 9 indicate that the percentage of China’s imports from the Americas,

ranged from a low of 13.76% in 2007, to a high of 15.89% in 2014. Table 5 and Figure 7

show China’s Total imports and China’s imports from the Americas to be 956,115,448


1,958,021,301 thousand U.S. dollars and 311,221,554 thousand U.S. dollars respectively, in

2014 the year with the highest trade imports into China from the Americas between 2007 and

2014. The percentage of China’s import trade volumes from the Americas, at least between

2007 and 2014, never exceeded 15.89% of China’s Total import volumes, as such any impact

on the Americas caused by policy changes or other factors in China that directly affect

China’s trade imports, can be expected to be limited to this order of magnitude.

Table 5 and Figure 9 indicate that the percentage of China’s imports from the Asia, ranged


China’s Total imports and China’s imports from the Asia to be 1, 958,021,301 thousand U.S.

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dollars and 1,085,293,801 thousand U.S. dollars, respectively in 2014; and 956,115,448

thousand U.S. dollars and 620,103,539 thousand U.S. dollars respectively, in 2007 the year

with the highest trade imports into China from the Asia between 2007 and 2014. The

percentage of China’s import trade volumes from Asia, at least between 2007 and 2014,

never exceeded 64.86% of China’s Total import volumes, as such any impact on Asia caused

by policy changes or other factors in China that directly affect China’s trade imports, can be

expected to be limited to this order of magnitude.

Table 5 and Figure 9 indicate that the percentage of China’s imports from the Europe, ranged


China’s Total imports and China’s imports from Europe to be 956,115,448 thousand U.S.

dollars and 139,649,033 thousand U.S. dollars, respectively in 2007; and 1,958,021,301

thousand U.S. dollars and 334,790,195 thousand U.S. dollars respectively, in 2014 the year

with the highest trade imports into China from Europe between 2007 and 2014. The

percentage of China’s import trade volumes from Europe, at least between 2007 and 2014,

never exceeded 17.10% of China’s Total import volumes, as such any impact on the

Americas caused by policy changes or other factors in China that directly affect China’s trade

imports, can be expected to be limited to this order of magnitude.

Table 5 and Figure 9 indicate that the percentage of China’s imports from Oceania, ranged

from a low of 2.97% in 2007, to a high of 5.59% in 2014. Table 5 and Figure 8 show China’s

Total imports and China’s imports from Oceania to be 956,115,448 thousand U.S. dollars and

28,376,169 thousand U.S. dollars, respectively in 2007; and 1,958,021,301 thousand U.S.

dollars and 109,509,465 thousand U.S. dollars respectively, in 2014 the year with the highest

trade imports into China from Oceania between 2007 and 2014. The percentage of China’s

import trade volumes from Oceania, at least between 2007 and 2014, never exceeded 5.59%

of China’s Total import volumes, as such any impact on Oceania caused by policy changes or

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Page 15

other factors in China that directly affect China’s trade imports, can be expected to be limited

to this order of magnitude.

As Figure 9 shows most clearly, between 2007 and 2014, the percentage distribution of the

Imports of China was thus; 55% to Asia, 16% to the Americas, 17% to Europe, 6% to Africa,

and 6% to Oceania.

2.2.3 United States’ Exports to Africa, Americas, Asia, Europe, and Oceania

Table 6 and Figure 13, which show the exports of the U.S. and the percentages of the exports

of the U.S. to Africa, the Americas, Asia, Europe, and Oceana, from 2007 to 2014; indicates

that the percentage of the exports of the U.S. to Africa, ranged from a low of 2.03% in 2007

to a high of 2.34% in 2014. Table 6 and Figure 12 show the Total Exports of the U.S. and the

exports of the U.S. to Africa to be 1,162,538,150 thousand U.S. dollars and 23,657,162


37,930,508 thousand U.S. dollars respectively, in 2014. U.S. export trade volumes to Africa,

did not exceeded 2.34% of the Total U.S. Export Trade volume, for any year between 2007

and 2014, as such any impact on Africa caused by policy changes or other factors in the U.S.

that directly affect the trade exports of the U.S., can be expected to be limited to this order of

magnitude.

Table 6 and Figure 13 indicates that the percentage of the exports of the U.S. to the

Americas, ranged from a low of 41.93% in 2009 to a high of 45.37% in 2014. Table 6 and

Figure 11 show the Total Exports of the U.S. and the exports of the U.S. to the Americas to

be 1,056,712,078 thousand U.S. dollars and 443,073,545 thousand U.S. dollars, respectively

in 2009; and 1,622,657,461 thousand U.S. dollars and 736,151,718 thousand U.S. dollars

respectively, in 2014. U.S. export trade volumes to the Americas, did not exceeded 45.37% of

the Total U.S. Export Trade volume, for any year between 2007 and 2014, as such any impact

Page 16

on the Americas caused by policy changes or other factors in the U.S. that directly affect the

trade exports of the U.S., can be expected to be limited to this order of magnitude.

Table 6 and Figure 13 indicates that the percentage of the exports of the U.S. to Asia, ranged

from a low of 29.23% in 2008 to a high of 31.28% in 2010. Table 6 and Figure 11 show the

Total Exports of the U.S. and the exports of the U.S. to Asia to be 1,299,898,877 thousand

U.S. dollars and 379,897,640 thousand U.S. dollars, respectively in 2008; and 1,277,109,162

thousand U.S. dollars and 399,527,393 thousand U.S. dollars respectively, in 2010. U.S.

export trade volumes to Asia, did not exceeded 31.28% of the Total U.S. Export Trade

volume, for any year between 2007 and 2014, as such any impact on Asia caused by policy

changes or other factors in the U.S. that directly affect the trade exports of the U.S., can be

expected to be limited to this order of magnitude.

Table 6 and Figure 13 indicates that the percentage of the exports of the U.S. to Europe,

ranged from a low of 19.72% in 2014 to a high of 24.31% in 2008. Table 6 and Figure 11

show the Total Exports of the U.S. and the exports of the U.S. to Europe to be 1,622,657,461



2008. U.S. export trade volumes to Europe, did not exceeded 20.58% of the Total U.S.

Export Trade volume, for any year between 2007 and 2014, as such any impact on Europe

caused by policy changes or other factors in the U.S. that directly affect the trade exports of

the U.S., can be expected to be limited to this order of magnitude.

Table 6 and Figure 13 indicates that the percentage of the exports of the U.S. to Oceania,

ranged from a low of 1.90% in 2013 to a high of 2.29% in 2012. Table 6 and Figure 12 show

the Total Exports of the U.S. and the exports of the U.S. to Oceania to be 1,587,001,360



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2012. U.S. export trade volumes to Oceania, did not exceeded 2.29% of the Total U.S. Export

Trade volume, for any year between 2007 and 2014, as such any impact on Oceania caused

by policy changes or other factors in the U.S. that directly affect the trade exports of the U.S.,

can be expected to be limited to this order of magnitude.

As Figure 13 shows most clearly, between 2007 and 2014, the Exports of the United States

were distributed approximately thus; 30% to Asia, 45% to the Americas, 20% to Europe, 3%

to Africa, and 2% to Oceania.

2.2.4 United States’ Imports from Africa, Americas, Asia, Europe, and Oceania

Table 7 and Figure 17, which show the total imports of the U.S., and the import volumes to

the U.S. from Africa, the Americas, Asia, Europe, and Oceana, from 2007 to 2014; indicates

that the percentage of the imports of the U.S. from Africa, ranged from a low of 1.48% in

2014 to a high of 5.41% in 2008. Table 7 and Figure 16 show the Total Imports of the U.S.

and the imports of the U.S. from Africa to be 2,408,098,712 thousand U.S. dollars and

35,522,664 thousand U.S. dollars, respectively in 2014; and 2,164,834,031 thousand U.S.

dollars and 117,220,100 thousand U.S. dollars respectively, in 2008. U.S. import trade

volumes from Africa, did not exceeded 5.41% of the Total U.S. Import Trade volume, for any

year between 2007 and 2014, as such any impact on Africa caused by policy changes or other

factors in the U.S. that directly affect the trade imports of the U.S., can be expected to be

limited to this order of magnitude.

Table 7 and Figure 17 indicates that the percentage of the imports of the U.S. from the

Americas, ranged from a low of 32.41% in 2009 to a high of 33.66% in 2013. Table 7 and

Figure 15 show the Total Imports to the U.S. and the imports to the U.S. from the Americas

to be 1,601,895,815 thousand U.S. dollars and 519,116,915 thousand U.S. dollars,

respectively in 2009; and 2,328,328,633 thousand U.S. dollars and 783,658,302 thousand

U.S. dollars respectively, in 2013. U.S. import trade volumes from Africa, did not exceeded

Page 18

33.66% of the Total U.S. Import Trade volume, for any year between 2007 and 2014, as such

any impact on Africa caused by policy changes or other factors in the U.S. that directly affect

the trade imports of the U.S., can be expected to be limited to this order of magnitude.

Table 7 and Figure 17 indicates that the percentage of the imports of the U.S. from Asia,


show the Total Imports to the U.S. and the imports to the U.S. from Asia to be 2,164,834,031


2,408,098,712 thousand U.S. dollars and 1,061,254,339 thousand U.S. dollars respectively, in

2014. U.S. import trade volumes from Asia, did not exceeded 44.07% of the Total U.S.

Import Trade volume, for any year between 2007 and 2014, as such any impact on Asia

caused by policy changes or other factors in the U.S. that directly affect the trade imports of


Table 7 and Figure 17 indicates that the percentage of the imports of the U.S. from Europe,


show the Total Imports to the U.S. and the imports to the U.S. from Europe to be

1,601,895,815 thousand U.S. dollars and 329,719,481 thousand U.S. dollars, respectively in

2009; and 1,966,496,750 thousand U.S. dollars and 381,802,586 thousand U.S. dollars

respectively, in 2010. U.S. import trade volumes from Europe, did not exceeded 20.58% of

the Total U.S. Import Trade volume, for any year between 2007 and 2014, as such any impact

on Europe caused by policy changes or other factors in the U.S. that directly affect the trade

imports of the U.S., can be expected to be limited to this order of magnitude.

Table 7 and Figure 17 indicates that the percentage of the imports of the U.S. from Oceania,

ranged from a low of 0.58% in 2013 to a high of 0.71% in 2009. Table 7 and Figure 16 show

the Total Imports to the U.S. and the imports to the U.S. from Oceania to be 2,328,328,633


Page 19


2009. U.S. import trade volumes from Oceania, did not exceeded 0.71% of the Total U.S.

Import Trade volume, for any year between 2007 and 2014, as such any impact on Oceania

caused by policy changes or other factors in the U.S. that directly affect the trade imports of


As Figure 17 shows most clearly, between 2007 and 2014, the percentage distribution of the

Imports of the United States was thus; 45% to Asia, 30% to the Americas, 20% to Europe,

3% to Africa, and 2% to Oceania.

3.0 China and U.S. Trade with One Another

U.S.-China trade rose rapidly after the two economies reestablished diplomatic relations, and

signed a bilateral trade agreement (which happened in January and July respectively of 1979)

and provided mutual most-favored-nation (MFN) treatment beginning in 1980. (Shitan, 2012;

and USGPO, 1998). Tisdall (2008) and Morrison (2006) believe that China’s economic

reforms began in the same year, that is, in 1979; when total U.S.-China trade (exports plus

imports) was $2 billion, China ranked as the United States’ 23rd largest export market, and its

45th-largest source of imports. (USITC DataWeb, 2014). In 2014, total bilateral trade

(exports plus imports) reached $592 billion; China is currently the second-largest U.S. trading

partner (after Canada), the third-largest U.S. export market (after Canada and Mexico).

(UNCTAD Stats, 2015). Over the past 10 years of so, China has been one of the fastest-

growing U.S. export markets and the largest source of U.S. imports. (UNCTAD Stats, 2015).

According to the U.S.-China Business Council, USCBC (2014), China was a $350 billion

market (2013) for U.S. firms, if direct and indirect U.S. exports to China, and sales by U.S. -

invested firms in China, are counted.

Trade between China and the U.S. is covered in greater detail by discussing such topics as

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China’s Exports, Imports, and Structure of the Trade with the U.S.; and U.S.’s Exports,

Imports, and Structure of the Trade with China, in the following sections.

3.1. United States’ Trade with China

3.1.1 United States’ Exports to China; Volumes & %ages of Total U.S. Exports

Table 8 and Figures 19 and 20, which are based on the author’s calculations and data from

United Nations Conference on Trade and Development (UNCTAD stat, 2014), show Total

Exports from the U.S. and U.S. Exports to China, from 2007 to 2014. Exports of the United

States to China, as a percentage of U.S. Total exports, from 2007 to 2014, ranges from a low

of 5.50% in 2008, to a high of 7.64% in 2014. (Table 8, and Figure 20). Total exports from

the U.S. and exports of the United States to China, in 2008 were 1,299,898,877 thousand U.S.

dollars and 71,456,412 thousand U.S. dollars, respectively. (Table 8, and Figure 19).

Alternatively the Total exports from the U.S. and U.S. exports to China, in 2014 were

1,622,657,461 thousand U.S. dollars and 124,023,905 thousand U.S. dollars, respectively.

(Table 8, and Figure 19).

3.1.2 United States’ Exports to China; Structure by Product Group Classes

Table 8a and Figures 19a, based on the author’s calculations and data from United Nations

Conference on Trade and Development (UNCTAD stat, 2014), show U.S. Exports to China

and the Structure by Product Group Classes of the U.S. Exports to China from 2007 to 2014.

The percentage of Product Group Class 0, Food and Live Animals, ranges from 2.99% in

2007 to 7.23% in 2013, of U.S. Exports to China; Product Group Class 1, Beverages and

Tobacco, ranges from 0.14% in 2007 to 0.27% in 2014, of U.S. Exports to China; Product

Group Class 2, Crude Materials-Inedible-Except Fuels, ranges from 4.04% in 2014 to

6.89% in 2011, of U.S. Exports to China; Product group Class 3, Mineral Fuels-Lubricants-

Related Materials, ranges from 0.46% in 2007 to 2.28% in 2012, of U.S. Exports to China;

Product group Class 4, Animal & Vegetable Oils-Fats & Waxes, ranges from 0.10% in

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2009 to 0.47% in 2010, of U.S. Exports to China; Product group Class 5, Chemicals and

Related Products, n.e.s., ranges from 11.01% in 2013 to 14.51% in 2009, of U.S. Exports to

China; Product group Class 6, Manufactured Goods, ranges from 4.91% in 2013 to 7.04%

in 2008, of U.S. Exports to China; Product group Class 7, Machinery & Transport

Equipment, ranges from 26.54% in 2012 to 44.45% in 2007, of U.S. Exports to China;

Product group Class 8, Miscellaneous Articles, ranges from 6.19% in 2007 to 7.31% in

2012, of U.S. Exports to China; and Product group Class 9, Commodities and Transport

n.e.s., ranges from 0.00% in 2007 to 0.47% in 2013, of U.S. Exports to China.

For the period under consideration, that is 2007 to 2014, U.S. Exports to China was

dominated by Product Group Class 7 items, which are Machinery and Transport Equipment;

followed by Product Group Class 5 items, which are Chemicals and Related Products.

3.1.3 United States’ Imports from China; Volumes & %ages of Total U.S. Imports

Table 9 and Figures 21 and 21a, which are based on the author’s calculations and data from


Imports of the U.S. and U.S. Imports from China, from 2007 to 2014. U.S. Imports from

China, as a percentage of U.S. Total Imports, from 2007 to 2014, ranges from a low of

16.46% in 2008, to a high of 20.19% in 2014. (Table 9, and Figure 21a). Total Imports of the

U.S. and U.S. Imports from China, in 2008 were 2,164,834,031 thousand U.S. dollars and

356,304,561 thousand U.S. dollars, respectively. (Table 9, and Figure 21). Alternatively the

Total Imports of the U.S. and U.S. Imports from China, in 2014 were 2,408,098,712 thousand

U.S. dollars and 486,196,055 thousand U.S. dollars, respectively. (Table 9, and Figure 21).

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3.1.4 United States’ Imports from China; Structure by Product Group Classes

Table 9a and Figures 19a, based on the author’s calculations and data from United Nations

Conference on Trade and Development (UNCTAD stat, 2014), show U.S. Imports from

China and the Structure by Product Group Classes of the U.S. Imports from China from 2007

to 2014. The percentage of Product Group Class 0, Food and Live Animals, ranges from

1.26% in 2014 to 1.46% in 2008, of U.S. Imports from China; Product Group Class 1,

Beverages and Tobacco, ranges from 0.01% in 2007 to 0.02% in 2014, of U.S. Imports from

China; Product Group Class 2, Crude Materials-Inedible-Except Fuels, ranges from 0.43%

in 2009 to 0.55% in 2008, of U.S. Imports from China; Product group Class 3, Mineral

Fuels-Lubricants-Related Materials, ranges from 0.07% in 2012 to 0.61% in 2008, of U.S.

Imports from China; Product group Class 4, Animal & Vegetable Oils-Fats & Waxes,

ranges from 0.01% for every year to 0.02% in 2009, of U.S. Imports from China; Product

group Class 5, Chemicals and Related Products, n.e.s., ranges from 2.31% in 2007 to

3.49% in 2011, of U.S. Imports from China; Product group Class 6, Manufactured Goods,

ranges from 10.69% in 2010 to 13.36% in 2008, of U.S. Imports from China; Product group

Class 7, Machinery & Transport Equipment, ranges from 43.92% in 2008 to 51.35% in

2014, of U.S. Imports from China; Product group Class 8, Miscellaneous Articles, ranges

from 30.78% in 2014 to 36.99% in 2007, of U.S. Imports from China; and Product group

Class 9, Commodities and Transport n.e.s., were negligible among U.S. Imports from

China, between 2007 and 2014.

For the period under consideration, that is 2007 to 2014, U.S. Imports from China was

dominated by Product Group Class 7 items, which is Machinery and Transport Equipment;

followed by Product Group Class 8 items, which is Miscellaneous Articles; and then Product

group Class 6 items, which is Manufactured Goods.

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3.2 China’s Trade with the United States

3.2.1 China’s Exports to the U.S.; Volumes & %ages of Total China Exports

Table 10 and Figures 22 and 22a, which are based on the author’s calculations and data from


Exports of China and China’s Exports to the U.S., from 2007 to 2014. Exports of China to the

United States, as a percentage of China’s Total exports, from 2007 to 2014, ranges from a

low of 16.71% in 2013, to a high of 19.11% in 2007. (Table 10, and Figure 22a). Total

exports of China and exports of China to the U.S., in 2013 were 2,209,007,280 thousand U.S.

dollars and 369,063,859 thousand U.S. dollars, respectively. (Table 10, and Figure 22).

Alternatively the Total exports from China and China’s exports to U.S., in 2007 were

1,220,059,668 thousand U.S. dollars and 233,168,790 thousand U.S. dollars, respectively.

(Table 10, and Figure 22).

Between 2007 and 2014, there was a general decrease in the percentage of China’s exports to

the U.S. when compare to China’s total exports.

3.2.2 China’s Exports to the U.S.; Structure by Product Group Classes

Table 10a and Figures 22b, based on the author’s calculations and data from United Nations

Conference on Trade and Development (UNCTAD stat, 2014), show China’s Exports to the

U.S. and the Structure by Product Group Classes of the China’s Exports to the U.S. from

2007 to 2014. The percentage of Product Group Class 0, Food and Live Animals, ranges

from 1.61% in 2014 to 1.91% in 2009, of China’s Exports to the U.S.; Product Group Class

1, Beverages and Tobacco, ranges from 0.0098% in 2010 to 0.0172% in 2007, of China’s

Exports to the U.S.; Product Group Class 2, Crude Materials-Inedible-Except Fuels,

ranges from 0.42% in 2009 to 0.57% in 2008, of China’s Exports to the U.S.; Product group

Class 3, Mineral Fuels-Lubricants-Related Materials, ranges from 0.31% in 2009 to

0.93% in 2008, of China’s Exports to the U.S.; Product group Class 4, Animal & Vegetable

Page 24

Oils-Fats & Waxes, ranges from 0.01% in 2007 to 0.03% in 2013, of China’s Exports to the

U.S.; Product group Class 5, Chemicals and Related Products, n.e.s., ranges from 2.90% in

2007 to 4.04% in 2011, of China’s Exports to the U.S.; Product group Class 6,

Manufactured Goods, ranges from 11.94% in 2010 to 14.45% in 2008, of China’s Exports

to the U.S.; Product group Class 7, Machinery & Transport Equipment, ranges from

48.01% in 2008 to 50.34% in 2014, of China’s Exports to the U.S.; Product group Class 8,

Miscellaneous Articles, ranges from 30.27% in 2008 to 32.24% in 2009, of China’s Exports

to the U.S.; and Product group Class 9, Commodities and Transport n.e.s., ranges from

0.00% in 2007 to 0.00% in 2014, of China’s Exports to the U.S.

For the period under consideration, that is 2007 to 2014, China’s Exports to the U.S. was


followed by Product Group Class 8 items, which are Miscellaneous Articles items; and

Product group Class 6 items, which are Manufactured Goods.

3.2.3 China’s Imports from the U.S.; Volumes & %ages of Total China Imports

Table 11 and Figure 23, which are based on the author’s calculations and data from United

Nations Conference on Trade and Development (UNCTAD stat, 2014), show Total Imports

of China and China’s Imports from the U.S., from 2007 to 2014. China’s Imports from the

U.S., as a percentage of China’s Total Imports, from 2007 to 2014, ranges from a low of

7.06% in 2011, to a high of 8.16% in 2014. (Table 11, and Figure 23a). Total Imports of

China and China’s Imports from the U.S. in 2011 were 1,743,394,866 thousand U.S. dollars

and 123,124,010 thousand U.S. dollars, respectively. (Table 11, and Figure 23). Alternatively

the Total Imports of China and China’s Imports from the U.S., in 2014 were 1,958,021,301

thousand U.S. dollars and 159,481,403 thousand U.S. dollars, respectively. (Table 11, and

Figure 23).

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3.2.4 China’s Imports from the U.S.; Structure by Product Group Classes

Table 11a and Figures 23b, based on the author’s calculations and data from United Nations

Conference on Trade and Development (UNCTAD stat, 2014), show China’s Imports from

the U.S. and the Structure by Product Group Classes of the China’s Imports from the U.S.

from 2007 to 2014. The percentage of Product Group Class 0, Food and Live Animals,

ranges from 2.78% in 2007 to 5.48% in 2012, of China’s Imports from the U.S.; Product

Group Class 1, Beverages and Tobacco, ranges from 0.131% in 2007 to 0.217% in 2014, of

China’s Imports from the U.S.; Product Group Class 2, Crude Materials-Inedible-Except

Fuels, ranges from 20.15% in 2007 to 26.42% in 2011, of China’s Imports from the U.S.;

Product group Class 3, Mineral Fuels-Lubricants-Related Materials, ranges from 0.59%

in 2007 to 2.09% in 2012, of China’s Imports from the U.S.; Product group Class 4, Animal

& Vegetable Oils-Fats & Waxes, ranges from 0.08% in 2009 to 0.28% in 2010, of China’s

Imports from the U.S.; Product group Class 5, Chemicals and Related Products, ranges

from 12.02% in 2014 to 16.38% in 2007, of China’s Imports from the U.S.; Product group

Class 6, Manufactured Goods, ranges from 4.83% in 2013 to 7.23% in 2008, of China’s

Imports from the U.S.; Product group Class 7, Machinery & Transport Equipment, ranges

from 34.13% in 2012 to 44.44% in 2007, of China’s Imports from the U.S.; Product group

Class 8, Miscellaneous Articles, ranges from 7.80% in 2011 to 8.69% in 2009, of China’s

Imports from the U.S.; and Product group Class 9, Commodities and Transport n.e.s.,

ranges from 0.00% in 2007 to 0.00% in 2014, of China’s Imports from the U.S.

For the period under consideration, that is 2007 to 2014, China’s Imports from the U.S. was


followed by Product Group Class 2 items, which are Crude Materials-Inedible-Except Fuels;

and Product group Class 5 items, which are Chemicals and Related Products. There were no

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items in product Group Class 9, which are Commodities and Transport, or Class 9 items they

were not reported separately.

4.0 Major China-U.S. Trade Issues

Most of the topics that fall under this category have been discussed extensively by many

authors, and include such topics as Chinese ‘State Capitalism’, Intellectual Property issues,

China and U.S. Obligations in the WTO, and China’s Currency Policy. (Hitt, Black, and

Porter, 2012; Morrison, 2015; Russell, 2014; White House, 2011; and USTR, 2015). The

remainder of this essay will instead discuss the trade balance of the China-U.S. trade, both

from the perspective of the United States and from the perspective of China.

4.1 China-U.S. Balance of Trade

The China-United States balance of trade, like the other major issues regarding China-U.S.

trade, has been covered extensively. (Morrison, 2015). This topic is, none the less, covered

here due to the Author’s access to reliable sources of trade data between China and the U.S.

In the course of this essay, this data has been used to establish such facts about the China-

U.S. trade as, the percentage of Worldwide trade that consists of the China-U.S. trade; the

percentages of China and U.S. Exports and Imports that are sent to and arrive from the

various continents of the world; and the percentages of the various standard product group

classes that make up China and U.S. Exports and Imports; over the period 2007 to 2014. The

quality of such information will now be used to establish the trade balance in the China-U.S.

trade, both with respect to China and with respect to the U.S.

Simply defined, a country's trade balance, also called balance of trade, is the calculation of its

exports minus imports; a balance of trade surplus happens when the value of all exports

exceeds the value of all imports, and a balance of trade deficit is when the value of all

imports exceeds the value of all exports. (Abel, Bernanke, and Croushore, 2008).

Page 27

4.1.1 China-U.S. Balance of Trade, with respect to the United States

Table 12 and Figures 24a, based on the author’s calculations and data from United Nations

Conference on Trade and Development (UNCTAD stat, 2014), show that for the years 2007

to 2014, the balance of trade deficit, with respect to the United States in the China-U.S. trade,

has grown steadily from 274,868,762 Thousand U.S. dollars in 2007, to 362,172,149

Thousand U.S. dollars in 2014. The size of the U.S. trade deficit with China is a major

concern among some U.S. policymakers. (Hufbauer, Wong, and Sheth, 2006). Some analysts

contend that the large U.S. trade deficit is an indicator that the trade relationship is

unbalanced, unfair, and damaging to the U.S. economy. (Brown, Crowley, McCulloch, and

Nakajima, 2005). Others argue the large trade deficit with China is more of a reflection of

global supply chains, where China is often the final point of assembly for export oriented

multinational firms. (World Bank, 2015).

4.1.2 China-U.S. Balance of Trade, with respect to China

Table 12 and Figures 24b, based on the author’s calculations and data from United Nations

Conference on Trade and Development (UNCTAD stat, 2014), show that for the years 2007

to 2014, the balance of trade surplus, with respect to China in the China-U.S. trade, has

grown steadily from 163,620,826 Thousand U.S. dollars in 2007, to 237,263,503 Thousand

U.S. dollars in 2014. The World Bank attributes the trade surplus to such factors as the global

supply chain distribution patterns, where China is often the final point of assembly for export

oriented multinational firms.

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Page 28

5.0 Last Word

In the course of this essay it has been established that, between 2007 and 2014, the exports of

China, as a percentage of Worldwide exports, was less than 12.5%; the exports of the U.S., as

a percentage of Worldwide exports, was in the order of 8.6%; the imports of China, as a

percentage of Worldwide imports, was less than 10.5%; and the imports of the U.S., as a

percentage of Worldwide imports, was less than 14.5%. This means that the impact on

worldwide trade caused by policy changes or other factors in China or the U.S. is likely to be

limited to the magnitudes of the aforementioned China and U.S. Import and Export

percentages of worldwide imports and exports.

It has been established that, between 2007 and 2014, China’s exports to Africa, the Americas,

Asia, Europe, and Oceania, never exceeded 4.5%, 25%, 51.4%, 24%, or 2.2% respectively, of

China’s total exports; and that, during the same period, China’s imports from Africa, the

Americas, Asia, Europe, and Oceania, never exceeded 6.25%, 15.9%, 65%, 17%, and 5.6%

respectively, of China’s total imports. This implies that the impact on the various continents,

caused by policy changes or other factors in China, is likely to be limited to the magnitudes

of the aforementioned continent’s import and export percentages of China’s total imports and

exports.

It has been established that, between 2007 and 2014, the exports of the U.S. to Africa, the

Americas, Asia, Europe, and Oceania, never exceeded 2.4%, 45.4%, 3.3%, 24.4%, or 2.3%

respectively, of the total exports of the U.S.; and that, during the same period, the imports of

the U.S. from Africa, the Americas, Asia, Europe, and Oceania, never exceeded 5.5%, 33.7%,

44.1%, 20.6%, and 0.8% respectively, of the total imports of the U.S. This implies that the

impact on the various continents, caused by policy changes or other factors in the U.S., is

likely to be limited to the magnitudes of the aforementioned continent’s import and export

percentages of the total imports and exports of the U.S.

Page 29

It has been established that, between 2007 and 2014, the exports of the U.S. to China, as a

percentage of the total exports of the U.S. never exceeded 7.7%; and these exports were

dominated by Product Group Class 7 items, Machinery and Transport (26.5% to 44.5%) of

U.S. exports to China; and Product Group Class 5 items, Chemicals and Related products

(11% to 14.5%) of U.S. exports to China. Between 2007 and 2014, the imports of the U.S.

from China, as a percentage of the total imports of the U.S. never exceeded 20.2%; and these

imports were dominated by Product Group Class 7 items, Machinery and Transport (43.9% to

51.4%) of U.S. imports from China; Product Group Class 8 items, Miscellaneous Articles

(30.8% to 37%) of U.S. imports from China; and Product Group Class 6 items, Manufactured

Goods (11.9% to 14.5%) of U.S. imports from China.

It has been established that, between 2007 and 2014, the exports of China to the U.S., as a

percentage of the total exports of China never exceeded 19.2%; and these exports were

dominated by Product Group Class 7 items, Machinery and Transport (48% to 50.3%) of the

exports of China to the U.S.; Product Group Class 8 items, Miscellaneous Articles (30.3% to

32.2%) of the exports of China to the U.S.; and Product Group Class 6 items, Manufactured

Goods (11.9% to 14.5%) of China’s exports to the U.S.. Between 2007 and 2014, the imports

of China from the U.S. as a percentage of the total imports of the U.S. never exceeded 8.2 %;

and these imports were dominated by Product Group Class 7 items, Machinery and Transport

(34.1% to 44.4%) of China’s imports from the U.S.); Product Group Class 2 items, Crude

Materials-Inedible-except Fuels (20.2% to 26.4%); and Product Group Class 5 items,

Chemicals and Related Products (12% to 16.4%) of China’s imports from the U.S..

Finally it has also been established that, the trade deficit, to the United States, in China-U.S.

trade has grown steadily from the order of magnitude of 274,870,000 thousand U.S. dollars in

2007 to 362,170,000 thousand U.S. dollars in 2014; and the trade surplus, to China, in China-

Page 30

U.S. trade has grown steadily from the order of magnitude of 163,621,000 thousand U.S.

dollars in 2007, to 237,264,000 thousand U.S. dollars in 2014.

6.0 REFERENCES

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The U.S. Trade Deficit: Made in China? Federal Reserve Bank of Chicago,

4Q Economic Perspectives

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currency-renminbi-for-a-third-consecutive-day.html

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Pearson Education Prentice Hall

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Tide, Rising Stakes. Washington, D.C.: Institute for International Economics

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devaluation-with-slight-official-rise-against-us-dollar

Page 31

8. Lau, L.J. (2000). The Chinese Economy: Past, Present, and Future.

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Page 32

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supply-chains

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