g economies, and with its efforts to reform, improve, and modernize its economy could come a significant increase in demand for imports. Infrastructure development, in particular, has been made a major priority, and the Chinese government has also announced that foreign firms will be allowed to participate in a wide variety of projects. This is very important to the United States because it mean that there is for the foreseeable future a market for their goods and services in China. Also as a result of the most-favored-nation trade status that China currently holds it makes the opportunity for international business ventures there even that much interesting because of the possibility of high profits. Another advantage for the United States is in the area of imports from China. The surge in United States imports of Chinese products over the past few years can be largely explained by two factors. First, China's production of low-cost, highly labor-intensive products has grown greatly in recent years. A main reason for this is that the price that which the Chinese are able to produce goods is at a lower level than almost any other producer. In addition the United States demand for product of this type has and mostly likely will continue to rise in the future. In response Taiwan and Hong Kong have moved many of their production firms into China to take advantage of lower labor costs. This is good for the economy of China and it also helps to supply the United States with low cost goods. (=)The growing U.S. trade imbalance with China, and the exclusive market segments of China's trade regime have become of major concern to many U.S. policymakers. Over the past few years, the U.S. trade deficit with China has surged. It rose to nearly 50 billion in 1997 and could top or exceed 60 billion in 1998. China's trade policies have become a focal point in the annual congressional debate over renewing China's most-favored-nation trade status. Along wi...
