The US Trade With China By henry bloom

China and America have been trading for years and years, however there is a massive deficit going one way. America has a total debt of $1.049 trillion to China. This is caused because of the massive amounts of imports from China which amount to way more money than our exports to them. This trend started many years ago; the most recent month we made profit in trade with China was in April of 1986. This current event shows us how communism is effecting China as a whole. China, as a massive country with a large economy, is trading on a very large scale with other countries such as America, and these trades are fueled by millions of people working for thousands of companies.
Our total dept to China is $1.049 trillion, which amounts to 28% of our total public debt to foreign countries. Last year our total trade with China was $659.4 billion. Our exports to them totaled $161.6 b, and our imports from China reached $497.8 b. This means the total deficit was $336.2 b. Just from the trade of goods there was a total $598 b worth of goods traded. Our imports hit $482 b and our exports ended up at $116 b, leaving a deficit of $366 b. Goods accounted for the other $61.3 b in trade. $45.4 b of the goods trade were exported from America and the other $15.9 b imported, giving us a surplus of $29.5 b. Our exports are down 6.1% from 2014, but up 182% from 2005. Our imports went up 3.2% from 2014, and up 98% from 2005 Goods. Our deficit from the trade of goods to China went up 6.6% from 2014. Our surplus from the trade of services to China has gone up 5.2% from 2014. We haven't had a surplus from trade with China after a whole calendar year since before 1985. The last month we had a surplus from trade with China was in April of 1986, when we had a $54 million surplus. This shows that America has increased in demand and China has increased its productivity and their creation of goods and services has increased. The productivity could be from communism because the money China receives is commonly owned, so people work hard to get money for the country so they can live better. This tells us that communism is helping increase work productivity and that communism has changed the way China functions.
Trump plans to instill a humongous 45% tariff on all imports from China. By forcing people to pay a 45% tax on all Chinese goods Trump hopes to empower American companies. People in America will be much more likely to buy American-made goods rather than the electronics, clothing, and machinery commonly bought from China. The only reason we need a tariff to persuade people to buy American goods because Chinese products are so much cheaper than those made in America. Chinese corporations can afford to sell their products at such cheap prices because they have a low standard of living, caused by their low GDP per capita, which is at $14,100, much less than America's, which is at $53,000. As of 2010, services and goods from China only accounted for 3% of consumer spending. If the tariff is created, it could see Mexican exports raise 3% due to new consumer demand. China's president, Xi Jinping, fears a trade-war could start if the tariff is created and instilled. He does not want to have to battle America in any kind of trade war and neither does the stock market. The effects of the tariff would be worse on American consumers and companies because Chinese firms rely way less on American exports and American firms rely on Chinese exports. The tariff could also be fueled by a historical hatred of communism expressed by America. Since communism and democracy are fueled by very different ideology, it is plausible that many Americans believe that we shouldn't give them our money due to their government. However, statistics show that while America has been increasing in demand for goods, china has been matching that demand with increase efficiency, showing that communism has changed the Chinese work force for the better.

My sources, in case you want to look deeper into the topic out of personal interest.

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