3.1 Employment and Poverty Reduction

By working toward the understanding of poverty and pushing forward efforts based on rigorous system of monitoring and evaluation, China had lifted more than 600 million people out of poverty between 1981 and 2004. Rapid growth and urbanization played a significant role in China’s poverty reduction in the past 2 decades. The first phase of reforms in China, that were taken to reduce poverty level in the country, witnessed a shift from commune system to Household Responsibility System (HRS), which boosted agricultural productivity and, thereafter, rural incomes substantially. The next phase of reforms featured fast labor-intensive industrial growth with an export orientation. This led to huge rural migration to the coastal and urban centers, leading to significant poverty reduction.

4. Drivers of bilateral trade

United States of America and Republic of China have a huge trade history that goes back to 1784, when the first shipment had been made with the final destination in Canton. At the beginning of 2008, U.S. and China have become each other’s second largest trading partner. In 2007, the U.S. sent $65.2 billion worth of exports to China and imported $321.5 billion worth of goods, raising the trade deficit to $256.3 billion. Starting since 1980s and up until now, the U.S. has had a bilateral trade deficit with the Republic of China.

Investments are the real driver of the bilateral trade between the two countries. China has benefited greatly in recent years due to increasing investments from the U.S. corporations because of the cheaper labor market there and also higher profits. The last, but not least driver of the bilateral relationship is the goal of trying to achieve international fair trade and, above all, avoid trade wars, allowing both parties to have each other’s products equally distributed in the countries.

4.1 Government policy

China’s government – an example for the world on competent economic management.

Chinese government is doing a great job managing the economic stability during the global financial crisis. Yes, its economy might be growing more slowly, but overall the government of China continues to deliver a better standard of living to its citizens. As a matter of fact, in China, the government wisely changes the financial regulations with focus on creating circumstances that will lead to new jobs at a faster pace of economic growth. Indeed, China is one of the strictest countries when it comes to financial fraud, which strongly deters criminality and corruption within the sector, allowing for fair policies that ultimately benefit the people of China as a whole.

4. US - China future

So what’s next in this relationship?

No matter how much the U.S. - China future is talked about, the future character between the two countries still remains uncertain. Though current relations continue to show promise that China remains a great trading partner and ally.

5.1 Opportunities of us – China bilateral relationship

Ben Rhodes, Deputy National Security Advisor, has mentioned in his speech, that the US – China relationship is the one of the world’s most important bilateral ties of these days. The historic partnership between the two countries has evolved over the last half-century. By cooperating and collaborating together, these two nations make a huge contribution to the global economy environment and other global issues (i.e., from economic stability and recovery to clean energy and climate change). That is why, healthy and stable bilateral relationship is very important, so that Chinese companies in the U.S. and American companies in China have excellent opportunities to do business in each other’s market. As China looks to increase its investment abroad, the U.S. should work towards ensuring an open environment by changing some laws and regulations, as cooperation is the only way to economic stability.