Chinese Regional Trade Agreements

1268 Words 6 Pages
Regional trade agreements are defined as reciprocal trade agreements between two or more partners. Regional Trade Agreements are a large topic with the upcoming 2016 presidential debate. In particular, trade agreements with China have gone under extensive review in order to establish a stronger American economy. There have been many jobs revoked from American citizens due to trade agreements set up with China to outsource both items as well as materials. Through decisions made by American presidents and Chinese officials the trade agreements were established to benefit both parties and throughout many years the benefits have shifted towards a more established Chinese economy and immensely difficult economy for Americans.
Chinese Trade Agreements
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An article in The New York Times states, “The majority of our trade deficits and manufacturing job losses are because of currency manipulation by China and about 20 other countries, including Japan, Malaysia, Singapore and Vietnam in the proposed Trans-Pacific Partnership.” While the currency manipulation could be large disadvantage for the American economy, there is only speculation regarding this aspect. Another article on U.S. News states, “It also helps domestic Chinese companies (that would compete against imports) because the actual 6.5 rate makes imports 14 percent more expensive than they might be if the rate was 5.7 RMB per dollar. This, is it alleged, keeps some foreign products out of China and benefits (or protects) Chinese businesses that produce substitute products that compete with imports.” This theory suggests that with the trade agreements established there has been more positive returns for China and those have been at the cost of American citizens. There are many articles that are provide rules for the trade agreement but there is nothing specific regarding currency manipulation and possibly because the act is unethical and distasteful as both countries came together with a mutual understanding of benefits available for …show more content…
presidential election quickly approaching there are many plans being created to ease the American economy and provide more jobs through higher taxes on imports being accepted. The candidate Donald Trump suggests raising tariff on Chinese imports to cause an abrupt change that could potentially increase manufacturing in the United States. In an article on The Wall Street Journal his plan is explained as it states, “Many of the areas hit hardest by China’s rise have shown some of the strongest support for Republican candidate Donald Trump, who has threatened to slap a 45% tariff on China as a way to force a change in Beijing’s trade policies.” While this is an aggressive statement, there are multiple reasons why the change must be established quickly and diligently. According to an article regarding Chinese Trade agreements by Alan Reynolds in The Wall Street Journal, “The U.S. had a $334.1 billion trade deficit with China in 2015, including services, according to the Commerce Department’s Bereau of Economic Analysis.” The numbers speak solely for themselves as the incredible debate on ways to find resolve continuously get tossed around in the news. While the trade agreement established does provide benefits to American’s that include cheaper imports, the future consequences are beginning to show their negative effects on the American

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