USA and China International Economic Relation

USA and China International Economic Relation
USA and China International Economic Relation

None of the economic relations on a global level compare to the one that the United States of America and China has. The USA and China’s international economic relations have worsened as time has passed.

This is the most complex and significant relationship among economic ties. The trade, investments, and financial performance of the last few decades have interlaced each of these countries’ economic powers with one another.

However, as interdependence has increased, significant government struggles and political issues in some countries have also contributed to the emergence of conflicts and disputes. This essay compares several kinds of economic ties to US and China.

The piece thus explores the intricacies of the two entities’ bilateral trade relations, their patterns of investment, as well as the possible routes taken with current changes in the global systems.

The Relationship of United States of American and China

In the economic sense, the relationship between the USA and People’s Republic of China is based on the economic transactions that hold between them. As of late, China has managed to get on the list of the major producing geographies, which are targeting the USA as one of the most important markets with many kinds of products.

However, the United States market is also a legitimate source of growth for China’s trade, which includes a vast range of items such as consumer electronics and industry machinery.

What is worth mentioning is the fact that the U.S. has been experiencing a huge trade deficit due to this trading relationship which in some ways has exacerbated the issue of job loss and the collapse of the manufacturing sector due to distressed among USA and China International Economic Relation.

Since then, not only has trade flourished between the two countries, but significant investments have also occurred. China’s concentrated market, low labor costs, and growing middle class have fueled the establishment of an impressive scale of American transnational corporations (TNCs).

Chinese investors are attempting to access the U.S. by offering investments in the same manner as previously in order to capitalize on new technologies, strategic assets, and diversification portfolios.

However, concerns over intellectual pirating, consequent hazards to national security, and the increasing chances of unfair competition have created regulatory issues and even made some investment flows difficult on both sides of the Atlantic.

Over the past few years, technical edge has been viewed as the sole determinant of the type of economic ties between the USA and China. In specific areas, including the power industry, AI, and semiconductors, both countries are competing against each other to be the company or the decision-maker.

World vision of the leading Western country on gaining that kind of the most advanced technologies forcedly through Chinese practices such as their “transfer” of the technologies or spying industry raised many concern.

The United States of America has responded to the platform’s action by denying Chinese firms the chance of buying cutting-edge technologies. The result of this has been an increase in tensions, and a variety of big impacts, including fears of failing to couple with technology and failing to recognize new technology, thus resulting in a poor USA and China International Economic Relation.

The economic determinations, on the other side, are not only important features but also they carry some impacts on the deal made of the United States and China.

In fact, in the USA the USA will come to know that China is looking on the long run as a possible threat to America’s global dominance. This can be a forerunner to the rapid development of competitions that span across multiple areas – a trade, technical as well as a security – issues.

Contrary to the Chinese perspective, China is proactively expanding its sphere of influence, not only in the Asia-Pacific region but also in other parts of the world, in an innovative effort to prevent the United States from dominating the world order again.

These clashes have not only deteriorated the USA-China international economic relations, but they have also fostered a culture of distrust and competition among many individuals.

Therefore, by providing the same photos, accommodations, and uniforms to all the athletes, the atmosphere that characterized the fights is a mere repetition of what is seen in movies.

The United States and China are not always on the same page and there is a big difference of opinion on how to move forward but there is still a lot of potential for both countries to cooperate and reach common goals.

Eventually, the diplomatic objective is to address issues of concern to both countries including climate change, public health, and nuclear programs, and to determine the strategies to improve the economic integration.

The absence of trade and investments exchange between them may over the course affect not only their own but also balance of the worldwide economy. From that interdependence, they have the incentive to improve their connection by exchanging their opinions and by negotiating between them.

The second and arguably, most important factor in practicing pragmatic collaboration on specific matters such as trade unbalance and genius property rights is that it plays an important role in developing good relations and smoothing out tensions, and lastly, it helps in building up trust over the time that the countries spend together solving various issues.


The fact that we maintain solid trade ties with China, but still manage to thrive as an economy is proof enough of the fact that these relations would not be fruitful at all if they were to continue in the same vein.

By virtue of the actual alliances that keep on changing as industries are being created, international politics and military situations are two of the varying factors that significantly affect this type of relationship.

In the four decades of their relationship where economic interdependence has been a bedrock, yet challenges and stresses brought out by wider strategic competition and internal problem has never been, too, a stranger.

Today, irresponsible assessment of the future can lead to countries recognizing the possibility of settlement and establishing communication platforms where both sides can exchange experiences.

Last but not least the strength of the global economy will be the foundation of deciding on which commitment the United States of America and China will depend next.