When we hear anything about China we automatically think about our trade relationship with them. And with that thought we wonder if trade with China is good or bad. The real answer is both. On one hand trade with China makes our lives better because they provide cheap goods. But on the other hand Trade in China is bad because it puts some Americans out of jobs. In this post I will be showing the pros and cons of trade with China.
The simplest pro to trading with China is that we export over 55 billion dollars in goods and services to China each year. This allows us to supply more jobs and increase the amount of money going into our counrty. We export electrical equipment, airplanes, and other goods to China which gives us a new market to trade in. China imports goods like footware so that instead of paying 150 dollars for a pair of shoes made in the USA we can pay 50 dollars for a pair made in China. China is usually the country where most US goods are assembled, which makes these goods a lot cheaper. And even though China manufactures a lot of goods the US still manufactures more then 2 times more then China, according to the US department of treasury. Also when we have international trade the US can give humanitarian aid easier. So The main pros for trade is cheaper produucts and some money in exports.
The cons to some are much greater. The main con is the trade deficet where China exports 287 dollars to the US, but the US only exports 55 billion dollars. Another con is that when the US loses many jobs when trading with China. Also many US jobs are being outsourced to China. Another con is that the US government owes money to China which it is always a bad thing to be a debter.
In my opinion trade with China is not that bad. I say this because if we didn't trade with China most of our goods would be more expensive and that would make our average standard of living lower.
Nice post. I liked the way you said the "on one hand... on the other hand" haha. I think trade with China is a good thing overall. True, we do lose jobs overseas, but we get cheaper goods from China too. Since China's goods are cheaper, it gives American businesses an incentive to lower prices to become more competitive against Chinese businesses.
ReplyDeleteTrade with China is good because it allows us to keep the costs of products down due to cheaper cost of production in China. However, we have a trade deficit meaning what exactly? We receive more from them than they do from us. So the goods assembled there are more popular in our markets. Are those goods made by American companies? For the most part the answer is yes, therefor that helps our economy. The demand for american products continues to exist. If American companies stopped producing in China, the price of goods would increase. Therefor demand would decrease and the economy would not grow because so much of the market would be affected.
ReplyDeleteAlthough trade with China may have adverse effects on our economy we cannot afford to halt trade. The only action is to continue efforts the increase imports and decrease the trade deficit.
Nice post dear. I really like it Purchasing in China & Logistics help in China
ReplyDelete