The trade deficit with China was $310.8 billion in 2020, and the number continues to rise. As an economic leader in the past, the United States had been tasked with supporting emerging nations in their efforts to construct a stable economic system. China was no exception, since we have been one of their most important trading partners. The United States aided China’s economy to become one of the best in the world, but now that they have reached the level of success, they no longer want or need our help. However, we, The United States, are the ones who need help now.
While rising global trade has the potential to undermine employment in the United States,, it also produces and sustains a large number of jobs. Exports to China sustain almost one million jobs in the United States, and Chinese enterprises investing in the country employ over 120,000 people. It enables US businesses to compete on a worldwide scale. Many American manufacturers use the Chinese market as a shelter from the global financial storm. Most Chinese products are of good quality and are low priced, which helps many American companies make a profit.
China has one of the greatest economies in the world. China is able to generate competitive pricing due to its lower quality of living, which allows Chinese enterprises to pay low salaries to their employees. Another reason may be the high value of the dollar. We also need to consider that China has the world’s largest population, meaning that there are more workers who produce more goods and complete more services.
We as a country have become so dependent on foreign goods. Many people believe that our economic future and national security are in jeopardy, because of our reliance on foreign commodities. As the manufacturing industry in the U.S. continues to decline, China has emerged as a manufacturing powerhouse. However, many say it will work well in the long term for our nation.
Opposing political parties have different views. The conservatives believe that we should stop trading with China. China is a communist dictatorship and has many strategies that can trick people. Some include currency manipulation, state-owned enterprises, technology theft, and technology transferring. They believe that China currently manipulates the dollar value so they have a thirty to forty percent advantage. They call this undervaluation “illegal” and should be considered to be an export subsidy. China has also been accused of buying American technology companies as standard strategies. Their goal was to steal trade secrets and intelligence from American companies and the government. declare, “We will not negotiate any new trade deals before first investing in American competitiveness at home.” The Democratic Party demonstrates that trading with China is crucial since the American economy relies on it, but they also state that their main priority is our economy, not the world’s.
In conclusion, the trade deficit between the United States and China continues to grow. While we may have not done much in the past to reduce the deficit, we can do more in the future. We have always had a trade imbalance, both in the past and present. We must gradually, but steadily, accustom ourselves to reliance on the Chinese economy and build our own.