U.S. andlarger than Japan’s. There are two focal points which surround the Chinese economywhich make this trading relationship very unique. First, free trade will increase the UnitedState’s export market and secondly, for this to happen the US must pay careful attentionto any possible decline in the growth of China’s economy. Let us begin with the fruits of a growing export market. Exports havegenerated growth and better paying jobs, especially in high technology, while imports havekept inflation low and benefited us, American consumers, greatly.An examination of any possibility of a major slowdown in the Chineseeconomy could lead to a downturn in Sino-American economic growth. An article byWeidenbaum explores the problems that may arise out of such a situation. He states that“Let us assume that China’s gross domestic product in the decade will no longer grow at10 percent a year, but at half that rate. Five percent, of course, is still quite respectable bythe standard of the more mature Western economies, which average 2.5 percent economicgrowth annually. The initial impacts of such a new scenario would likely be negative forthe American economy, but quite uneven and limited” (Weidenbaum 228). This wouldlead to an even lower U.S. export rate which would thus affect mostly machinery andequipment, chemicals and plastics, aircraft, electronic equipment, and agricultural sectors. Thus augmenting the already huge American trade deficit with China. Ultimately,reducing the chances of approving any more “fast track” treaties and would reducesupport for the IMF’s support of weak Asian economies. There are many restrictions for US companies trading with China. Amongst these constraints are “its high tariffs , its restrictions on which Chinesecompanies can trade with the outside world and which foreigners can trade with China; itsprotection of favored industries; and its histor...
