Trade With China

China is one of America's biggest suppliers in trade. So far we have been doing well by being their allies and being agreeable to each others terms. What has me curious and others worried is what Trump will do with his new business partners as president. Our relationship with other countries is crucial for the U.S. to survive as a country. The inauguration on Friday has begun the new season of "What Will Happen in America Today?"

Donald Trump has already claimed we are in a trade war with China and that "...we have the power over China, economic power."  That may be indication that as president, he would want to use trade as a weapon. If that is so, it could majorly backfire. Years ago China became the world's 'factory floor', by making and producing things that we and other countries wanted. But cutting of ties with them won't bring back the mass of America's jobs lost to the Chinese industry.

Trump threatens to put a 45% tax on Chinese imports and to push firms into returning their jobs and factories to America. The used to be presidential candidate, Bernie Sanders had an opposition to free-trade agreements, past ones and current ones. And also, Hillary Clinton supported the Trans-Pacific Partnership now is against it. I think that with our economy, America benefits from cheap imports from China. Increasing the amount of tax might be beneficial but I understand it as paying more money.


In 2015, we had with a total of $482 billion in imported items, along with $116 billion in exports, and a debt of $366 billion. "The U.S. trade deficit with China is the largest in the world." This is because Chinese workers work for lower wages and seem to keep up the work load. This keeps American jobs lower for us and out of the picture, therefore giving China the advantage. I know that when something has a label that says 'Made in America', it will have a more expensive price, but maybe a higher quality product.

In the midst of selecting people to be on the presidential cabinet, Trump chose Terry Branstad, governor of Iowa, to be an ambassador to China. He has apparently had ties with the Chinese President, Xi Jinping, that go back awhile. His friendship with them makes China more opt to welcoming our government. This will be great for this country and Trump's new image as president and leader. "The move could help reassure China’s leadership that Trump understands the importance of healthy relations with Beijing." In a previous blog, I had written about Elaine Chao, our government's transportation secretary. Like Terry Branstad, she will connect ties with foreign countries and strengthen our relationship with them. 

I want to say that in a way, abolishing trade with China would be 'social suicide'. We depend on them for many of our goods and products. By maintaining them as allies, we open doors to new trade opportunities that could be great for America.