Business and Trade Relationships between the United States and China Term Paper

Business and Trade Relationships between the United States and China - Term Paper Example As the business relationship between these two nations have gone through a many high points as well as low points, it has been an interesting topic of study for many researchers throughout the world. Furthermore, it is important to understand the different details of the trade relationship in order to get a better idea on how the relationship would continue in the future. This article focuses on exploring the business relationship between the United States and China. Traversing through historical trends, current state of business and future trends, this study would try to identify any potential opportunities for the future and how they can be utilized. In addition, it will also look at the possible challenges and ways to overcome those challenges. A Historical Perspective Early 18th century to World War II Before exploring the current and the potential of future relationships, it is necessary to take a look at way in which trade relations shaped historically. The first trade interact ion between two countries began around the late 1700s through the sea route. After the American Revolution, there was an attempt at sea exploration and American trader ship known as the ‘Empress of China’ arrived in the port of Canton (Dudden, 1992). This arrival of this ship in China was a very remarkable event because of the needs of both these countries. China had a huge demand for raw materials and Americans were on the hunt for anything exotic and oriental (Ng, 1983). This paved the way for a trade relationship between the two nations, which began to be popularly known as the Old China trade. The Americans were very interested in products like tea, cotton and silk, where as the Chinese were interested... Business relationships between the United States and China is a topic of discussion in this term paper. The researcher chose it because of the complex economic relationships between two countries and the way. The United States and China economic relationship has been one that has seen tremendous high points and equally strong low points. During the 1970s, the trade interactions between the United States and China were very less. However, the establishment of good bilateral relationship between both these countries resulted in the expansion of economic ties and hence, there was a considerable surge in the way in which trade and business grew. In due course of time, that is analyzed in the paper China become one of the top five trading partners of the United States and has become the largest market for the exported goods from China. The U.S companies have also been investing in China at a steady pace, especially during the past decade in avenues such as information technology. It is ve ry interesting to note how the trade and business relationship between two nations is heavily dependent on the way in which the political relationship between these nations is at a particular point of time. In conclusion, the researcher stets that while it is clear that trade between these countries have proven to be mutually beneficial, it would require a tremendous effort from the political and economic leadership of both nations to ensure that a strong momentum is maintained in times to come.