Trade Agreements between US and China
Globally, the trade agreements that exist between the United States of America and China is considered to be the second largest. Also known as the Sino-American relations, the trade agreements have been described by many analysts as multifaceted and very complex. According to the US government, China is not an adversary but a competitor in some areas and a partner in various fields. So far, the two countries have signed quite a number of agreements that are valued at several billions of dollars.
As at 2014, the US notably has got the largest economy in the world while China closely follows behind at position two. Relations between the two countries have been stable for several years, despite periods of tension that were mostly experienced after the fall of the Soviet Union. Today, the People’s Republic of China and the United States are major trade partners with a common interest; to suppress and prevent nuclear proliferation and terrorism. China is notably the largest foreign creditor for the US.
So far, the two countries have entered into several trade agreements; enough reason for the impeccable economic growth that they have registered. In 2010, the Obama administration and a delegation from China signed deals that were aimed at benefiting a variety of US companies including manufacturers of computer software, wind turbines and beef producers. For some time, China had banned beef imports from the US due to an outbreak of mad cow disease but that was lifted as a result of the talks between Obama administration and a delegation from China in 2010.
The agreements that were reached during that time were on some of the issues that had for a long time caused tension between the two nations. These included the rampant piracy of US intellectual property and the barriers that China placed on American beef. In the agreements, China gave a reaffirmation to allow the resumption of beef imports from America from animals below the age of 30 months. Besides, China also indicated its commitments to increase government spending on software purchases as an incentive towards cutting down on the use of pirated software.
The agreements also aimed at boosting the exports sales by the US wind turbine manufacturers and heavy equipment. In one of the agreements, China pointed out its decision to review the catalogs used by the government in the purchase of heavy and industrial machinery so that it does not create any discrimination against foreign suppliers. The two nations also signed seven new agreements touching on agricultural trade on US Soybeans exports to China and how Chinese investments in the States can be promoted.
Apart from the above, there are more trade agreements between China and the US on areas like technology, energy, intellectual property rights, business cooperation and trade statistics. As a result of the trade agreements reached by the two nations, it was estimated that the total value of trade between them stood at $385.3 billion in 2010 alone.
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