Summary:
The US trade deficit with China swelled to $201 billion last year up from $161 billion a year earlier. The strength of China's manufacturing sector in everything from clothing to electronics means that it is being blamed for the misfortune of the US workers. This paper critiquess on these statements and assesses the trading and business issues between the US and China, including the pressure for China to open its domestic markets to foreign competition and to allow it's currency, the Yuan, to trading freely since joining the World Trade Organization.
Why China wanted to be a member of the WTO
One of the main reasons China wanted to become a member of the WTO is that joining the WTO would help the general population of China in a numerous of ways, such as improving the economy and living conditions. It would help China avoid economic standstill, increase productivity of economic resources and stimulate economic growth. Employment would increase, especially in light manufacturing. More trading partners also cuts the cost of living for all involved parties. WTO membership would give China a more stable access to foreign markets because it would make trade smoother and undisrupted. With this stability, China will be in a better position to attract foreign investors who are more confident about developing China's domestic market. Foreign investment brings in capital, management, technology, market information and global production and distribution networks that would link China more firmly to the other economies.
Joining the WTO would help China to become acknowledged as one of the world's great powers. The opportunity had arisen for China to ascend to the role of the leading Communist super-power country. C ...