Trade deficit of us with china in 2001 reached 896

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number of countries to which it began exporting, and widening the trade gap with US. Trade deficit of US with China in 2001 reached $89.6 billion and was increasing persistently until the Global Financial Crisis happened in 2008. In 2005 and 2006, US trade deficit with China recorded the largest trade deficit that a single country may have in the history. Some critics attributed that deficit to losses in jobs in US manufacturing sector, China's currency manipulation to decrease its exports prices to be competitive than other US exports, lack of governmental transparency, intellectual property protection and obstacles facing US exports to China. (Wang, 2013) In 2008 and 2009, the GFC had negative ramifications on the global economy and particularly on the western and American economies. Trade deficit decreased to reach $258
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9 billion as a result of decreasing Chinese imports and slight increase in US exports. But after 2010, the trade deficit increased again as Chinese imports grew till 2015. It was $318.7 billion in 2013 before increasing in 2014 to $344.8 and then in 2015 to $367.33 billion. After 2015, the trade balance decreases than the last three years to reach only $347 billion. 2017 is considered a turning point when the trade deficit skyrocketed to $375.5 billion, making an increase of 8.23%, making the largest deficit ever happened since 1988. Trump has exploited this to start a trade war against China by imposing tariffs on major imports to force China to decrease this trade deficit, stop stealing the intellectual property and create a suitable climate for US exporters and investors there. Conclusion : Trade wars are harmful to the country and global economy. It creates inefficiency, trade diversion, misallocates resources, and harms international trade and global economic growth and stability. Trade wars have no winners unless a trade partner has high elasticity of imports than the other partner. The world faces now two scenarios, either the worst one of continuing retaliatory tariffs and escalating trade war which will impact the individual economies and the global economy negatively, or the best one of reaching agreements like the recent negotiations between Trump and Bing, the Chinese president, to mitigate trade war repercussions and settle their disputes. List of References: Bibliography (2018, September 18). Retrieved September 30, 2018, from BBC: BBC. (2018, July 6). Charting the US-China trade battle . Retrieved November 25, 2018, from BBC: Boudreaux, D. J., & Ghei, N. (2017, January). The Benefits of Free Trade: Addressing Key Myths. Retrieved November 26, 2018, from Mercatus Center: - _the_benefits_of_free_trade_addressing_key_myths_-_v2.pdf Dominick, S. (2013 ). International Economics (11th ed.). USA: Fordham University.
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10 Drozdz, J., & Miskinis, A. (2011). BENEFITS AND THREATS OF FREE TRADE. Ekonomia- Economics , 2(14), 40-48 .
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