Development Of SinoUs Economic And Trade Relations

Development Of Sino-Us Economic And Trade Relations. Essay, Research Paper

Development of Sino-US economic and trade relations.

When you are eager to get in touch with your family or friends, Motorola can transmit messages for you anywhere at any time. When you open .Windows 98 x, when you are taking Boeing Aircraft, when you are eating McDonald s or Kentuky Fired Chicken with relish while drinking Coca-Cola, have you ever thought that it is development of Sino-US economic and trade that have brought so many favors to us. Have you ever known the developed course of Sino-US economic and trade relations. Have you ever cared about the future of Sino-US economic and trade relations. I ll be glad to talk the development of Sino-US economic and trade relations about its past, present and future.

Let’s review the development of Sino-US economic and trade relations.

On February 21,1972, when President Nixon arrived at Beijing Airport, the late Chinese Premier Zhou Enlai took his hand and said: .You have reached across the world s largest ocean to shake my hand. x The historic handshake ended the more than two decades of hostile separation of the world s two great nations, and China established officially diplomatic relations with the US on January 1, 1979. During President Nixon s visiting, China purchased 10 Boeing airplanes from America, which is a real beginning of Sino-US economic and trade co-opration.

Bilateral economic ties and trade have developed rapidly since the two countries resumed high-level contacts and opened the door for further development of relations in 1972. Trade between the two countries grew out of nothing, expanded from small to large and is rising in a gratifying way.

According to statistics from the China General Administration of Customs, Sino-US trade in 1997 amounted to US$48.99 billion, 20 times the figure of 1979 when the two countries established diplomatic relations. In the 18 years from 1979 to 1996, two-way trade totaled US$260.6 billion. Between 1979 and 1995, the United States was China s third largest trading partner, and in 1996, it moved up to second place. In the 1990-1997period, the trade volume increased at an average annual rate of 22.6 percent, much higher than the 15.9 percent average annual growth rate of China s foreign trade in the same period. By the end of last year, Sino-US trade accounted for 15 percent of China s foreign trade volume. According to the latest Chinese customs statistics, the United States surpassed Hong Kong to become the Chinese mainland s second largest trade partner after Japan in the first five months of this year. Between January and May of this year, the bilateral trade reached US$19.8 billion, up 12.6 percent over the same period last year. China s exports to the US grew by 18 percent to US$13.3 billion, when imports from the US hit US$6.4 billion, an increase of 2.6 percent over the same period of last year.

According to US customs statistics, bilateral trade was only US$2.37 billion in 1979 but reached US$63.5 billion in 1996, totaling US$376 billion over the past 18 years. China became the fourth largest trading partner with the United States in 1996, up from 24th place in 1980. Despite differences in the two countries calculations, statistics from both sides show that bilateral trade has recorded average annual growth of more than 18 percent during this period.

Meanwhile, two-way investment has increased rapidly. Since 1992, when the Chinese economy began a boom, US corporate investment in China has gained promptly in momentum. By the end of last year, direct investment projects in China involving US firms reached 24,366, with a contracted volume of over US$40 billion, of which about US$17.5 billion had been used. By May of this year, the number of US-funded projects in China stood at 25,184 with contractual investment of US$18.74 billion. After China s Hong Kong and Taiwan regions, the US is the second biggest foreign investor in China, right after Japan. On the other hand, China s investment in the US has also been growing since it started at the end of the 1970 s. By the end of last year, there were 526 Chinese-invested firms in the US, involving US$682 million in contractual investment and US$471 million in actual investment. Alongside the country s reform, opening and economic growth, China has constantly increased investment and expanded cooperation areas with the United States.

The rapid development of bilateral economic ties and trade is outcome of concerted efforts of the two countries.

The rapid development of bilateral economic ties and trade is outcome of concerted efforts of the two governments and business communities. China is the largest developing country, and the United States is the largest developed country. Their differences in reserves of natural resources, industrial structures and levels of consumption mean that the two countries can complement each other and economic cooperation have natural advantages.

China s cheap and quality products are attractive to Americans, while US goods, with their advanced technological levels and suitability to Chinese construction, are well received in China. The country s huge market and abundant labor resources are major factors making many American companies give top priority to China while expanding their business overseas. At the same time, many Chinese c