China-U.S.TradeImbalanceKam-faiWongSEEM3600System Engineering & Engineering Management
Kam-fai Wong SEEM 3600 System Engineering & Engineering Management China-U.S. Trade Imbalance
China's Tradewith the U.S.,2002-11 (billion)*China was the largestsourceof U.S.imports in past 5years (2007-2011)*China accounted for 19.1%of U.S.imports in2010 (compared to8.2% in2000).2002200420052006200720082009201020032011US22.128.434.755.265.271.591.941.869.6ExportsUS125.2152.4196.7243.5287.8321.5337.8296.4364.9ImportsTotal147.2180.8231.4285.3343.0386.7409.2366.0456.8US-103.1-162.0-201.6-232.5-256.3-266.3-226.8-273.1-275-124.0BalanceChina-U.S. Trade Statistics
China-U.S. Trade Statistics China's Trade with the U.S., 2002-11 ($ billion) * China was the largest source of U.S. imports in past 5 years (2007-2011). * China accounted for 19.1% of U.S. imports in 2010 (compared to 8.2% in 2000). 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 US Exports 22.1 28.4 34.7 41.8 55.2 65.2 71.5 69.6 91.9 US Imports 125.2 152.4 196.7 243.5 287.8 321.5 337.8 296.4 364.9 Total 147.2 180.8 231.4 285.3 343.0 386.7 409.2 366.0 456.8 US Balance -103.1 -124.0 -162.0 -201.6 -232.5 -256.3 -266.3 -226.8 -273.1 -275
Top5U.S.ImportsFromChina:2005-2010(Smillion)An increasing proportion of U.S.imports from China havebeen comprised ofmoreAdvancedTechnologyProducts(ATP)米However,a large shareof theATP imports from China are infact relatively low-200520062007200820092010CommodityDescription35,46740,04644,46245,82044,81859,800Computerequipment and parts26,44928,88834,82735,83530,66834,168Misc.manufacturedcommodities(toys,games,etc.)14,12117,97723,19226,61826,36233,464Communications equipment andparts22,95516,36219,22822,58322,66926,603Apparel15,28718,78919,07519,71518,24319,493Audio and video equipmentandpartsNote:North American Industry Classification system,4-digit levelU.S. Imports from ChinaStatistics
U.S. Imports from China Statistics Top 5 U.S. Imports From China: 2005-2010 ($ 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 lowend technology products and parts. Note: North American Industry Classification system, 4-digit level Commodity Description 2005 2006 2007 2008 2009 2010 Computer equipment and parts 35,467 40,046 44,462 45,820 44,818 59,800 Misc. manufactured commodities (toys, games, etc.) 26,449 28,888 34,827 35,835 30,668 34,168 Communications equipment and parts 14,121 17,977 23,192 26,618 26,362 33,464 Apparel 16,362 19,228 22,955 22,583 22,669 26,603 Audio and video equipment and parts 15,287 18,789 19,075 19,715 18,243 19,493
TheChinese TireCaseThe Service Workers International Union (Usw) argued that the “extraordinaryincrease in imports of tires from China had hurt tire producers in the UnitedStates and contributed tothe loss of 5,100 U.S.tire-related jobs from 2004-2008,andthat3,000morejobswouldbelostin2009.TimeEvent20Apr.2009UnitedSteelworkersrequestaninvestigationundersection421oftheTrade Act.11Sep.2009UsPresidentBarackObamaimposespunitivedutiesof35%onChinesetireimports.14Sep.2009China requested consultations withtheUnited States concerning increasedtariffs on certain passenger vehicle and light truck tyres from China.13Dec.2010WTOrulesinfavoroftheUS.24May2011China raises an appeal and urges the US to terminate the safeguardmeasures.5Sep.2011WTocourtsaystheUs isentitledto imposeextra safeguarddutiesonimportsofChinesetires.China-U.S. Trade Issues
China-U.S. Trade Issues 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 2004-2008, and that 3,000 more jobs would be lost in 2009. Time Event 20 Apr. 2009 United Steelworkers request an investigation under section 421 of the Trade Act. 11 Sep. 2009 US President Barack Obama imposes punitive duties of 35% on Chinese tire imports. 14 Sep. 2009 China requested consultations with the United States concerning increased tariffs on certain passenger vehicle and light truck tyres from China. 13 Dec. 2010 WTO rules in favor of the US. 24 May 2011 China raises an appeal and urges the US to terminate the safeguard measures. 5 Sep. 2011 WTO court says the US is entitled to impose extra safeguard duties on imports of Chinese tires
China's Export RestrictionThe UnitedStatescharges that China's exportrestriction are intendedto lowerpricesforChinesefirms(steel,aluminum,andchemical sectors)inordertohelpthemobtainan unfaircompetitiveadvantage.TimeEvent23Jun.2009TheUnitedStatesbroughtacaseagainstChina'sexportrestrictions(suchasexportquotasandtaxes)onrawmaterials.Chinaclaims thattheserestraints areintendedtoconservetheenvironmentandexhaustiblenaturalresourcesJul.2011AWTO panel issued a report that ruled that many of China's exportrestraintsonrawmaterialsviolatedWTOrulesChina-U.S. Trade Issues
China-U.S. Trade Issues 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. Time Event 23 Jun. 2009 The 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. 2011 A WTO panel issued a report that ruled that many of China’s export restraints on raw materials violated WTO rules