Who is the real winner of Sino-US trade?

Who is the real winner of Sino-US trade?
Sep 5, 2007 04:11
FRANKENSTEIN Points: Join Date: Nov 29, 2004 Status: offline	The Sino-US trade imbalance has been a big concern for both sides for a long time. Last year, the total trade volume bewteen China and US reached 226.8 billion US dollars. Meanwhile, China's trade surplus reached about 144 billion US dollars. The enornous trade surplus has aroused US's discontent. China and US have held Sino-US Strategic Economy Dialogues two times. One of the key issues is the trade imbalance. However, it seems that this issue is too complicated and hard to solve quickly. The third round dialogue will be held in Beijing. Trade imbalance is still the key. Well, we have to admit that China has won a great deal of trade surplus. However, it does not make a lot of profits. About two thirds of the exported goods are from the foreign invested companies in China. Take Barbie doll for example. The selling price of each doll is about 20 dollars. However, China just earns 0.35 dollar. Another example is IPOD. Most of the ipods are assembled in China. Each ipod is worth about 299 dollars. The Apple needs to pay about 130 dollars to its accessory supplyers and only 3 dollars to China for assembling. Actually, China is the low-cost assembly line. What's more, US has invested about 54 billion dollars in China till the end of 2006. On contrary, China has just invested about one billion in US. In 2006, the profit of American companies in China reached 10 billion dollars. According to the survey made by the US-China Chamber of Commerce, 73% American companies admit that they have made profits in China. Who is the real winner of Sino-US trade? What do you think of the trade imbalance between China and US?

Sep 5, 2007 04:11

FRANKENSTEIN
Points:
Join Date: Nov 29, 2004
Status: offline

The Sino-US trade imbalance has been a big concern for both sides for a long time. Last year, the total trade volume bewteen China and US reached 226.8 billion US dollars. Meanwhile, China's trade surplus reached about 144 billion US dollars. The enornous trade surplus has aroused US's discontent.

China and US have held Sino-US Strategic Economy Dialogues two times. One of the key issues is the trade imbalance. However, it seems that this issue is too complicated and hard to solve quickly. The third round dialogue will be held in Beijing. Trade imbalance is still the key.

Well, we have to admit that China has won a great deal of trade surplus. However, it does not make a lot of profits. About two thirds of the exported goods are from the foreign invested companies in China. Take Barbie doll for example. The selling price of each doll is about 20 dollars. However, China just earns 0.35 dollar. Another example is IPOD. Most of the ipods are assembled in China. Each ipod is worth about 299 dollars. The Apple needs to pay about 130 dollars to its accessory supplyers and only 3 dollars to China for assembling. Actually, China is the low-cost assembly line.

What's more, US has invested about 54 billion dollars in China till the end of 2006. On contrary, China has just invested about one billion in US. In 2006, the profit of American companies in China reached 10 billion dollars. According to the survey made by the US-China Chamber of Commerce, 73% American companies admit that they have made profits in China.

Who is the real winner of Sino-US trade? What do you think of the trade imbalance between China and US?

Sep 6, 2007 02:16

KATRINA
Points:
Join Date: Nov 29, 2004
Status: Offline

The trade imbalance is a big concern for China and US. In order to reduce the trade surplus, China has taken a series of measures to tighten its exports and to encourage imports. The tax rebate on these low value added products have been lowered. Meanwhile, it also imposes exports tax. The tax rebate on about 37% of the total exports have been reduced. It has made some achievements. Trade surplus growth is expected to slow down.

Who is the real winner of the Sino-US trade? Both. China wins great trade surplus from US while US makes profits from China. In order to make more achievements, both sides should strengthen their corporation and understanding. That is the key. Trade barrier can not solve this problem but possibly make the situation worse.

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