Question

The USA and People’s Republic of China have been in trade negotiations for about a year. Can a solution be reached that is mutually beneficial with both countries? Can the structure established over 40 years be changed? Cite some examples to explain your answer.

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Answer 1

USA and china are fighting through the trade policies. USA is running huge trade deficit with china which is approximately to $ 485 Billion. Thus is exceptionally huge trade deficit.

here problem is that china is using its policies artificially keeping its exchange rate devalued thereby pushing up its export and reducing import significantly. Now such conflict can be solved either asking china to not artificially temper its currency and further, consider the further relaxation to US products. China must reduce its positive trade deficit with USA.

Such policies actions would help both countries further their economic relations.