Kam-fai Wong SEEM 3600 System Engineering & Engineering Management

China's Trade with the U.S., ($ billion) * China was the largest source of U.S. imports in past 5 years ( ). * China accounted for 19.1% of U.S. imports in 2010 (compared to 8.2% in 2000). Notes: *Calculated by USCBC. U.S. exports reported on a free-alongside-ship basis; imports on a general customs-value basis. Source: US Department of Commerce; U.S. International Trade Commission (ITC) US Exports US Imports Total US Balance

Top 5 U.S. Imports From China: ($ million) * An increasing proportion of U.S. imports from China have been comprised of more Advanced Technology Products (ATP). * However, a large share of the ATP imports from China are in fact relatively low- end technology products and parts. Source: U.S. International Trade Commission DataWeb. Note: North American Industry Classification system, 4-digit level Commodity Description Computer equipment and parts35,46740,04644,46245,82044,81859,800 Misc. manufactured commodities (toys, games, etc.) 26,44928,88834,82735,83530,668 34,168 Communications equipment and parts 14,12117,97723,19226,61826,36233,464 Apparel 16,36219,22822,95522,58322,66926,603 Audio and video equipment and parts 15,28718,78919,07519,71518,24319,493

The Chinese Tire Case The Service Workers International Union (USW) argued that the “extraordinary increase in imports” of tires from China had hurt tire producers in the United States and contributed to the loss of 5,100 U.S. tire-related jobs from , and that 3,000 more jobs would be lost in TimeEvent 20 Apr. 2009United Steelworkers request an investigation under section 421 of the Trade Act. 11 Sep. 2009US President Barack Obama imposes punitive duties of 35% on Chinese tire imports. 14 Sep. 2009China requested consultations with the United States concerning increased tariffs on certain passenger vehicle and light truck tyres from China. 13 Dec. 2010WTO rules in favor of the US. 24 May 2011China raises an appeal and urges the US to terminate the safeguard measures. 5 Sep. 2011WTO court says the US is entitled to impose extra safeguard duties on imports of Chinese tires.

China’s Export Restriction The United States charges that China’s export restriction are intended to lower prices for Chinese firms (steel, aluminum, and chemical sectors) in order to help them obtain an unfair competitive advantage. TimeEvent 23 Jun. 2009The United States brought a case against China’s export restrictions (such as export quotas and taxes) on raw materials. China claims that these restraints are intended to conserve the environment and exhaustible natural resources. Jul. 2011A WTO panel issued a report that ruled that many of China’s export restraints on raw materials violated WTO rules.

* On September 29, 2006, President Hu Jintao and U.S. President George W. Bush agreed to establish a Strategic Economic Dialogue (SED) in order to have discussions on major economic issues at the “highest official level.” * The first meeting was held in December Four subsequent rounds of talks were held during President Bush’s term of office (the last was in December 2008). * On April 1, 2009, U.S. President Obama and Hu agreed to continue the high- level forum, renaming it the U.S.-China Strategic and Economic Dialogue (S&ED). * On July 27-28, 2009, the first round of the S&ED was held in Washington. The session was focused heavily on issues relating to the global economic crisis. * On May 24-25, 2010, S&ED economic session focused heavily on the continuing efforts relating to conclusion obtained in the July 2009 session. * On May 9-10, 2011, the third round of the S&ED was held in Washington, DC.