U.S.-China Trade

China's Economic Revolution Deng Xiaoping ( )

US-PRC WTO Agreement , US & China completed bilateral talks on China’s access to WTO China cut its average tariff level from 22.1% to 17% China cut import tariffs on automobiles from 80%-100% to 25% China cut import tariffs on agricultural products to 14.5%-15%

US-PRC WTO Agreement Foreign banks be able to conduct local currency business and retail business. US firms be allowed to provide auto financing in China China allow 49%-50% investment by foreign telecommunication providers US companies be allowed to invest in Chinese Internet content providers

US-PRC WTO Agreement China import up to 50 US movies a year China eliminate export subsidies China allow distribution rights for US exporters China enter WTO as a developing country, not a developed country as previously insisted by the US

China’s potential for trade world’s largest emerging market –1.35 billion people –rapidly rising purchasing power manufacturing centers –relatively young population –low living standard –education

China's Trade Partners 2012

U.S. trading partners In total trade volume, mainland China was –no. 19 in 1984 –no. 6 in 1994 –no. 2 since 2006 (15% in 2013) In total imports, mainland was –no. 21 in 1984 –no. 4 in 1994 –no. 1 since 2007 (19% in 2013)

Foreign direct investment Foreign-invested enterprises account for –54% of P.R.C.’s total trade –54% of P.R.C.’s total imports –54% of P.R.C.’s total exports

U.S. investment in P.R.C. 53 billion US dollars 17 thousand projects Three of the largest foreign-invested enterprises in mainland China: –Motorola (China) (2006 sales of US$9 billion) –Shanghai GM (2006 sales of US$6 billion) –Dell (China) (2006 sales of US$4 billion)