US Trade Policy Emphasis on "Reciprocity" Creates Conflict with China

Sino-US trade relations are increasingly troubled by America’s concerns over China’s trade practices.

[ClickPress, Thu Oct 18 2007] Sino-US trade relations are increasingly troubled by America’s concerns over China’s trade practices that result in the mounting imbalance in bilateral trade and US suffering huge trade deficits.

A study in the Wiley-Blackwell journal – China and World Economy – suggests that the US has differing emphases from China in trade policy and this dissimilarity might have been a major aspect of trade frictions between both countries.

Other specific trade concerns include China’s continued barriers against US exports, the Government’s preferential treatment to its own industries and its failure to protect intellectual property rights.

Author of “Political Economy of US Trade Policy towards China” Dr. Bibo Liang says, “Despite the benefits reaped by both US and China, the massive amount of trade between the two countries inevitably creates much conflict and friction.”

The US regards Chinese trade barriers as a factor of America’s huge deficits and inconsistent with China’s multilateral commitments. In addition, the Chinese exchange rate mechanism creates an advantage for China in trade with the US.

US trade policy is distinctively formulated with political objectives of national interest and political strategy. A shared political authority between branches of US government and interest groups, as well as the business cycle and political cycle imposes a unique balancing act when it comes to the formulation of US trade policy.

Conversely, China insists that trade policy should be more economically determined and that a non-politicized solution should be introduced to ease trade frictions.

China’s rise as a global economic power is viewed by Americans as an opportunity as well as a challenge. US trade policy towards China treads the fine line between political necessity and economic interest. The mix of both countries business, as well as China’s actions mean that smooth trade relations between both countries is not yet a reality.

Dr Liang added, “Given the current context, smooth trade relations between China and the USA are not to be expected, and may even deteriorate occasionally by a large extent. However, we can eventually expect the improvement of trade relations – in a direction that is in the economic interests of countries.”



******



This paper is published in the November 2007 issue of China & World Economy. Media wishing to receive a PDF or schedule media interviews with the authors should contact Alina Boey, PR & Communications Manager Asia at alina.boey@asia.blackwellpublishing.com or phone 613-83591046.





About China & World Economy
China & World Economy was launched in 1993 by the Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS). Originally self-published, the journal begins its official publishing partnership with Blackwell Publishing in 2006. Published six times a year, this journal combines original academic research works with policy review articles - many of its authors are distinguished Chinese economists from both academic and governmental circles. As the only English language journal in China devoted to the topic of Chinese economics, readers can expect objective, analytical and up-to-date quality content. With distinguished contributors such as economists from both the government and academic circles, the journal will provide an informed and balanced window on China, and will undoubtedly become essential reading for all those interested in China's development.



About Wiley-Blackwell

Wiley-Blackwell was formed in February 2007 as a result of the merger between Blackwell Publishing Ltd. and John Wiley & Sons, Inc.'s Scientific, Technical, and Medical business. Together, the companies have created a global publishing business with deep strength in every major academic and professional field. Wiley-Blackwell publishes approximately 1,400 scholarly peer-reviewed journals and an extensive collection of books with global appeal.




***END***

Bookmark this release: Del.icio.us - Digg - Furl - Blinklist - Reddit