Trade & Conflict: US & China Trade Agreements

Abstract

The US and China are the two key global superpowers dominating the world today. The relationship between these two nations has, and will continue to shape the outcome of the world we live in. This paper will investigate both trade and financial agreements between the US and China, first by looking briefly at a history of the two nations to distinguish precedent from legacy. It will also examine the different types of labor each economy employs, how it is used and question the net effect of these differences in the economic and political spheres. Last we will examine the issue of trade imbalances, GDP computation, currencies, and the implication they holds for the future. The period from 2000 to the present day will be addressed separately; as we have entered an economic era where the “new normal” has yet to clearly establish itself.