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  China Receives Pressure from the US to Restore Balance in the International Trade
 

As the United States and China bring international trade issues on the table, the latter is admonished to do the necessary moves to accelerate the reform on policies to immediately restore economic balance. The US made its point at the start of the recent meeting in Washington by saying that China should attend to the insistent, repetitive, and continuing lack of balance in the monetary and international trade condition. US companies have blamed China for bringing threat to jobs in America by doing inordinate efforts to lower yuan, which in turn increases China's exports.

China responded to the US with a caution that the latter might be inclined to blame China for its domestic troubles. In response, the US made it clear that it has no problem with competition when it comes to international trade with China. Furthermore, the US said that its main concern is the manner by which the policies in China are changed. Wu Yi, the Chinese vice premier, answered back by saying that the accusations to them are simply brought about by the inclusion of politics in economy and in international trade. It was pointed out that such politics is not only unacceptable but would further complicate matters. In the end, China stated its preparedness to work hand in hand with US to come up with efficient methods to solve the imbalances in the international trade. Ms. Wu said that China intends to expand the importation of goods from the US as an effective measure.

However, the US is continuously experiencing the bad effects of the increasing deficit in trade with China. The deficit has recorded to be more than $230 billion last year. Because of this, the US Congress has moved to make necessary steps to oppose China, with analysts saying that yuan is maintained unnaturally low, which gives China a favorable edge in the competition in the international trade. This perceived unfairness made members of the US Congress clamor for the increase of yuan value for more than 35%. Last year, China allowed the yuan to be in its controlled movements that increased its power for up to 5%. Just recently, the appreciation for yuan was increased from 0.3% to 0.5%. While this could be a sign of diplomatic moves from China, analysts say that it will only make slight difference if none at all.

In the same meeting of US and Chinese leaders on international trade issues, the former also brought the problem of piracy. The number of pirated DVD and branded clothing are alarming the US. The subsidies made by the Chinese authorities were also said to be affecting the situation. Analysts say that although these issues have trivial effect on the lack of balance, they could not be set aside. This is because, according to them, the true cause of the problems in the international trade, especially on the part of US, is the failure of the Americans to buy more local goods than imported ones.

 

 

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