Abstract
This chapter outlines economic characteristics that shape the Sino-US trading relationship and gives an overview of trade policymaking in both countries. Although this chapter focuses on the United States, much of it is relevant to other Western countries. The purpose of this chapter is twofold—(1) to lay a foundation for the theory in subsequent chapters and (2) to refute common political, often populist, arguments about the harm of trade with China and its causes. Trade is a positive sum game, but it imposes some overlooked costs. These costs are a result of the specifics of the trade policymaking processes in each country which produce a playing field asymmetrically tilted in China’s favor.
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Notes
- 1.
See FRED data series RTFPNACNA632NRUG and RTFPNAUSA632NRUG from the Federal Reserve Bank of St. Louis.
- 2.
Federal Reserve Economic Data (FRED) from the Federal Reserve Bank of St. Louis. Data Series RTFPNAUSA632NRUG.
- 3.
Federal Reserve Economic Data (FRED) from the Federal Reserve Bank of St. Louis. Data Series DPCERE1Q156NBEA.
- 4.
Federal Reserve Economic Data (FRED) from the Federal Reserve Bank of St. Louis. Data Series BPCCRO1Q156NBEA.
- 5.
U.S. Bureau of Economic Analysis International Investment Positions (IIP) Table 1.2.
- 6.
U.S. Bureau of Economic Analysis International Transactions (ITA) Table 1.2.
- 7.
U.S. Bureau of Economic Analysis International Transactions (ITA) Table 1.2.
- 8.
Consolidated Appropriations Act of 2018, Public Law 115–141.
- 9.
Trade Act of 1974, Public Law 93–618.
- 10.
Trade Expansion Act of 1962, Public Law 87–794.
- 11.
Trade and Tariff Act of 1984, Public Law 98–573.
- 12.
Omnibus Trade and Competitiveness Act of 1988, Public Law 100–418.
- 13.
Defense Production Act of 1950 (Public Law 81–774).
- 14.
Exon-Florio Amendment, Omnibus Trade and Competitiveness Act of 1988 (Public Law 100–418).
- 15.
Foreign Investment Risk Review Modernization Act of 2018, Subtitle A of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232).
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Gmeiner, R. (2021). The American Economy and Institutions with Sino-US Trade. In: How Trade with China Threatens Western Institutions. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-74709-1_3
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