Lasa 2 International Government Web

YearsExport200762,936,891,576200869,732,837,543200969,496,678,611201091,880,613,0792011103,939,433,941 YearsImport2007321,442,866,9342008337,772,627,8232009296,373,883,4882010364,943,854,1512011399,361,922,088 YearsTrade balance with China (millions of dollars)2007-258,505,975,3582008-268,039,790,2802009-226,877,204,8772010-273,063,241,0722011-295,422,488,147 China (in terms of trade volume) is the second largest trade partner of United States. Looking at the data, it can be noted that over the last five years, United States has continuously been in trade deficit with China i.e. Chinese exports to United States exceeds its imports from United States. Product wise, except for some primary sector products, manufacturing products and petroleum and coal products, the United States has trade deficit with China in almost all products. This means that United States is exporting more jobs than it is importing from China. These data shows to what extent U.S economy is dependent on Chinese economy. United States is heavily dependent on Chinese economy for many its important requirements and as a result Chinese are holding huge amount of dollars as reserves. This is likely to put upward pressure on the value of Chinese currency and therefore Chinese currency would appreciate. The appreciation of Chinese currency might result in China losing its competitive advantage on global stage and therefore can negatively affect Chinese trade balance with other countries. The huge and the continuous trade deficit which the US is having with