To what extent does the protective trade policy of the USA influence Essay

To what extent does the protective trade policy of the USA influence the Chinese economy - Essay Example United States of America (USA) has come out clearly in opposition to the kind of trading done by China. USA blames China for being business minded at the cost of the relations that exist between China and foreign investors. After USA and China re-established diplomatic relations in early 1979, trading between these two nations advanced greatly. China rose to the rank of being an imperative business partner of USA. However, with time, US imports from China rose to a higher level than the exports to that country. This resulted in the need for USA to formulate policies that would reduce consumption of products from China. For example, since the year 2004, USA banned poultry products from China. There are regulatory measures that are taken to limit trade within a nation when that nation is considered a threat to the balance of trade between the two nations. To benefit their citizens in a trade venture, some countries protect their markets against foreigners. This is an evaluation of the causes and effects of protectionism of trade by US on Chinese economy and possible remedies for restoring trade relations. Protectionism: This is an illegitimate way by which politicians use to shut down imports into a country on account of worsened domestic economic condition. This is aimed at improving benefits to local citizens and reduces spending on imports. Through this a country targets to spend less on imports than on exports (Chen, 2010, p170). Trade policies: These are regulations that are implemented by a nation to regulate trade relations with its partners. Through these regulations, a country is able to balance its spending on imports and exports. This fosters growth of a nation through time. Some trade policies are unjustifiable and are put in place to sideline potential competitors within a field of market (Gomory and Baumol, 2011, 689). Free trade: This is the creation of unrestricted exchanges of goods and services