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Thread: Who is the real winner of Sino-US trade?

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[quote=FRANKENSTEIN,245204]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?[/quote]

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