The China – U.S. Trade Policy Stances: The Impasse or Viable Solutions?

Abstract

Since the WTO accession China with its market economy demonstrates a stable situation of growth and low inflation, a large trade surplus with the Asian region countries, the U.S., and the EU. The article investigates the problem of China’s international trade policy functioning which is based on flexible and pragmatic-oriented FTAs. Some of them (both provocative and risky as well as preferential) were highlighted within the research. The pivot is the Sino – U.S. trade exchanges which have expanded rapidly and have maintained a double-digit growth for the trade volume in a comparatively short period. Keeping in mind that China and the U.S. are each other’s largest trading partners, the authors utilized the statistics data to evaluate all the gains China gets in the framework of this partnership. Because of the country’s most important exports to the U.S. are electrical machinery and audio-visual products this very sector of industry was used as fact-based, illustrative material for analysis. The study indicates the influential factors which affect the foreign trade and makes an emphasis on some of them which determine the friction, with geopolitical rivalry theme as its background. The authors also appeal to the anti-dumping policy topic and the trade transfer effect.