What will be the effects of the recent trade agreements between China and the US?

Question

what will it do for the trade numbers (the deficit) and how this might benefit or hurt either country.

Answer 1

Like any trade agreement we have with any country. We end up with the short end of the stick and the taxpayers will pay the difference............Next question!!

Answer 2

The deficit of the US will grow and China will import more American goods but American goods are losing their attraction in China because of other competing countries. India and China have recently completed a trade agreement opening a vast market for both countries. Bottom-line is that American goods are expensive compared to other sources, and the only real commodity is technology. I live and work in China and it is difficult to find an American product here, but I can buy Italian shirts, Gucci, Pierre Cardin and Australian cheddar cheese. The American firms that have opened factories here such as Kodak and Buick are accepted by the quality but at local prices, not the prohibitive prices of imported goods. China on the other hand enjoys about 90% of the American toy market for export and as the US becomes a consumer market as opposed to a producer, China or other countries will increase the deficit just as Japan has done.

Answer 3

Some people in America believe that by having a trade understanding favours China. There is little or no knowledge that Chinese are actually paying the American government to buy their goods. If Chinese don't park their foreign exchange in the US treasury, the situation would be different. What America should do is to wide open the doors for Chinese investments in USA without undue strings attached. If not, the trade deficit will keep ballooning in the years ahead! And, sooner or later, the Chinese government will gradually divert its US dollar holdings in America to other currencies and other countries, thereby creating a situation beyond anyone's imagination in America!

Answer 4

While you are thinking about this question, also think about the affect of our Labor Unions. Our Unions created conditions that forced Employers to pay higher and higher wages while they lost more and more of their power to set the conditions that they were paying for.

Eventually ( and understandably ) big employers moved their activities to countries where they "got their dollar's worth. If I were a big employer, I would do the same thing, wouldn't you?

China, now provides a lot of the things Americans like to buy, things that would have been manufactured in America if the manufacturing labor was better controlled.

Answer 5

Chinese trade is a lot cheaper then american trade.
Seems like we'll be getting cheaper items for a cheaper prize.
The nation might soon look like bargain houses and bargain $.99 cent houses.
China might have the income to afford american items, making them stronger and better.
We should trade with Japan if anything. Increase trade with them.

Answer 6

Bad for the US with more jobs moving to the FAR EAST and a dependence being built on them to supply us with goods.
As far a China is concerned it is good for them to a point, if not kept in check however as the people make more money and start to enjoy financial freedom, they will start to want more personnal freedoms.

Answer 7

more homeless, jobless,junkies and beggars in the streets of NYC, LA or Washington

more Ferraris, Porsches, Bentleys in the streets of Xuang Huang, Ching Chong, Guang Kong, or Pekin.

Answer 8

perhaps we will forever be supporting china buy shopping at walmart. old sam's just gotta be spinnin' in his grave. it ain't always good leaving nothin' but money to those what ya spawned. maybe to live long e'nuff to teach 'em whut ta do with it? hmm. too late now to tell the junkie/alcoholic offspring...

Answer 9

it just means more china cheap junk less jobs weaker economy etc.etc.