Why did the US want to trade in China?
The West wanted the tea which China produced and believed that it had the right to trade for it. Trade was seen as the means to expand national and personal wealth, so it was assumed to be natural that every one and every country would take part in trade.
What happens if China sells all US debt?
Since the U.S. dollar has a variable exchange rate, however, any sale by any nation holding huge U.S. debt or dollar reserves will trigger the adjustment of trade balance at the international level. The offloaded U.S. reserves by China will either end up with another nation or will return back to the U.S.
What is the current trade relationship between the USA and China?
The trade relationship between the USA and China are going through a difficult period. Over the last decades, the United States was a trade leader in the world market. Despite this, China is steadily gaining momentum and in just a few decades has become one of the major trade rivals of the United States of America.
How will America deal with China?
America will work with China in areas of common interest, like climate change, but counter its ambitions elsewhere. That means building up the strength at home and working abroad with allies that can supplement its economic, technological, diplomatic, military and moral heft.
Why do China and the United States fight each other?
Perhaps the simplest explanation is the most compelling: that China (with some support from Russia and others) and the United States (with some support from its democratic allies) are each seeking to defend or widen their zones of influence.
What is the impact of cheap Chinese products on American industry?
The most sensitive areas of industry to the impact of cheap Chinese products are manufacturing of footwear, textiles and furniture (David, Dorn, & Hanson, 2013). Allegations of unfair Chinese trade deal with many important sectors of American industry, including high-tech and eco-technologies.