Accommodating newer trade & financial powers

1. Accommodating newer trade & financial powers China

2. Background: China • Chinese Economy in 2007 • GDP per capita: International Dollar $5345 • GDP growth rate: 12% • Gross exports : USD$968.9 billion • Gross imports: USD$791.5 billion

5. U.S. –China Trade Relations • Background • U.S. investment in China : USD$57 billion in 2007 • U.S. gross exports to China: USD$49.6 billion in 2007 • U.S. gross imports from China: USD$229.4 billion in 2007 • United States is the sixth-largest foreign investor in China; China is the third-largest trading partner for the United States • Total two-way trade between China and the United States grew from USD$33 billion in 1992 to over USD$386 billion in 2007.

6. U.S. Approach • Fully integrate China into the global, rules-based economic and trading system. • Expand U.S. exporters' and investors' access to the Chinese market. As China grows and develops, its needs for imported goods and services will grow even more rapidly.

7. Regional and Global Integration • In November 1991, China joined the Asia-Pacific Economic Cooperation (APEC) group, which promotes free trade and cooperation in the economic, trade, investment, and technology spheres. • China formally joined the WTO in December 2001. As part of this far-reaching trade liberalization agreement, China agreed to lower tariffs and abolish market impediments.

8. Strategic Economic Dialogue (SED) In December 2007, Treasury Secretary Paulson met with P.R.C. Vice Premier Wu Yi in Beijing for the third round of the Strategic Economic Dialogue (SED), which addresses bilateral issues such as trade, currency, and foreign investment. Focus— • Maintaining sustainable growth without large trade imbalances; • Continued opening of markets to trade, competition, and investment; • Cooperation on energy security, energy efficiency, and the environmental and health impacts.

9. U.S. Trade Deficit With China • In 2007, the U.S. trade deficit with China was USD$256 billion, the largest in the world between any two countries.

10. Policy Proposal • Keep urging China to enforce its Intellectual Property Law more strictly. • Loosen export controls on technology transfers. - Export Administration Regulations (EAR) Key Regulatory Areas: High Performance Computers Encryption

11. References • http://www.law.duke.edu/journals/dltr/articles/2001dltr0030.html • http://www.bis.doc.gov/policiesandregulations/index.htm#ear • http://www.bis.doc.gov/policiesandregulations/index.htm#rp • http://www.bis.doc.gov/deemedexports/deemedexportsfaqs.html#4 • http://www.state.gov/r/pa/ei/bgn/18902.htm • http://www.brookings.edu/testimony/2001/0425globaleconomics_lardy.aspx • http://www.brookings.edu/~/media/Files/events/2008/0728_asia/0728_asia.pdf • http://www.hoover.org/research/focusonissues/focus/12436706.html • http://useconomy.about.com/od/tradepolicy/p/us-china-trade.htm • http://www.allacademic.com/meta/p_mla_apa_research_citation/0/8/4/3/0/p84307_index.html • http://chinadaily.com.cn/china/2006-03/25/content_552048.htm • http://www.nytimes.com/2008/11/07/business/worldbusiness/07yuan.html?_r=1&scp=9&sq=china&st=cse&oref=slogin • http://www.nytimes.com/2008/10/27/opinion/27mon1.html?scp=20&sq=china&st=cse • http://censtats.census.gov/cgi-bin/naic3_6/naicCty.pl • http://www.sipo.gov.cn/sipo2008/zcfg/ • http://ddp-ext.worldbank.org/ext/DDPQQ/member.do?method=getMembers&userid=1&queryId=6