US benefits from Chinese market
Statistics from the Ministry of Commerce show that the United States has invested a total of 65.2 billion U.S. dollars in some 59,000 projects as of the end of 2010 in China, making China the profit engine for American business.
According to a survey the American Chamber of Commerce in China (AmCham-China) conducted last year, 71 percent of American business in China made profits in 2009 and 46 percent of the businesses interviewed said they had made more money invested in China than they did in other country or region.
Some leading American companies unveiled their new investment projects at the beginning of 2011. General Electric (GE), with a total investment of 2 billion U.S. dollars, plans to strengthen research and development, set up more innovation centers and open new joint ventures in China. Proctor and Gamble announced it would invest another 1 billion U.S. dollars in China in the next five years. Ford said it would expand production in China in 2011. Caterpillar plans to set up a new joint venture and expand its parts business in China. Starbucks set the target of opening 1,500 new shops on the Chinese mainland by 2015. The Carlyle Group announced it would create a kind of investment fund for China and increase investment in Chinese industries.
As America's second largest trading partner, China is also the market that has seen the fastest growth in export volume with the United States. According to the latest statistics by China's General Administration of Customs, China-U.S. trade totaled 385.3 billion U.S. dollars in 2010, an annual increase of 30 percent. In terms of the total trade volume, China's imports from the United States accounted for 102.04 billion U.S. dollars, a year-on-year increase of 31.7 percent.
Statistics from the U.S. Chamber of Commerce show that U.S. goods exports to China have jumped from 19.2 billion in 2001 to 71.5 billion U.S. dollars in 2008, an increase of 272 percent. However the increase was only 72 percent in terms of the exports to other countries and regions. In the services trade, the United States has been running a trade surplus with China. The United States registered a trade surplus of 7.43 billion dollars in 2009, four times higher than in 2001.
The United States benefited from China's rapid economic growth through exports to China, with all states having reaped tangible profits. China is among the top five largest export markets of 40 American states. There has been a 330 percent increase of America's manufacturing and agricultural exports to China, much higher than U.S. trade volume to other countries and regions, which stands merely at 29 percent.
China now has become the sole overseas market for U.S. beans and cotton and the key export market for its mechanical products, such as autos and planes. The report by the U.S.-China Business Council (USCBC) in 2010 said that China continues to be the key export destination for the U.S. manufacturing industry and agriculture. Zhou Shijian, a senior research fellow with the Center for U.S.-China Relations at Tsinghua University noted that Obama would hardly live up to his promise of doubling American exports in the next five years without increasing trade ties with China.
US benefits from economic, trade cooperation with China overall
Economic and trade cooperation between the United States and China not only directly benefits U.S. exports and investments in China, but also contributes to America's extensive and tremendous macroeconomic interests, which are primarily represented by the large improvements to American consumers' way of life due to Chinese exports.
According to statistics, daily consumables, such as clothing, shoes, socks, toys, bags and electronic equipments, account for 75 percent of the Chinese goods entering the American market. All those Chinese goods, which are very competitive in both quality and price, greatly enrich the American people's lives and expand their choices, especially for those moderate and low-income citizens. At the same time, they help the United States to maintain lower inflation under the pressure of heavy "double deficits."
A study released by the American financial services firm Morgan Stanley shows Americans saved more than 300 U.S. dollars per capita by purchasing products from China in the year 2009. Another study launched by the USCBC shows the U.S. GDP increased by 0.7 percent higher than usual in 2010 due to increased U.S. trade and investment in China. Meanwhile, commodity prices will also drop 0.8 percent because of that. The sum of both effects is equal to adding 1,000 U.S. dollars to every American family's disposable income every year.
Liu Haiquan, the director of the Comprehensive Department of China's Ministry of Commerce, said: "Chinese goods can meet U.S. consumers' needs and are helpful for stabilizing prices of the American market, reducing the risk of inflation and maintaining the smooth operation of the economy."
Sino-U.S. economic and trade cooperation also increased the number of jobs in the United States. Gary Faye Locke, U.S. secretary of commerce, said in his speech at the USCBC in last October that "every 1 percent increase in exports to Asia will bring 100,000 jobs." He said nearly 2.6 million job opportunities were added in the country from 2001 to 2008 thanks to U.S. exports to China.
So far, China holds the largest amount of U.S. bonds. According to the U.S. Treasury, China held as much as 906.8 billion U.S. dollars of U.S. bonds by last October. During the global financial crisis, China did not sell those bonds but continued to buy them, which played an important role in maintaining a stable U.S. financial market. China's purchase of bonds strengthened liquidity, relieved the credit squeeze, accelerated trade financing and helped the U.S. to realize its macro-control targets.
Statistics from the Ministry of Commerce show that the United States has invested a total of 65.2 billion U.S. dollars in some 59,000 projects as of the end of 2010 in China, making China the profit engine for American business.
According to a survey the American Chamber of Commerce in China (AmCham-China) conducted last year, 71 percent of American business in China made profits in 2009 and 46 percent of the businesses interviewed said they had made more money invested in China than they did in other country or region.
Some leading American companies unveiled their new investment projects at the beginning of 2011. General Electric (GE), with a total investment of 2 billion U.S. dollars, plans to strengthen research and development, set up more innovation centers and open new joint ventures in China. Proctor and Gamble announced it would invest another 1 billion U.S. dollars in China in the next five years. Ford said it would expand production in China in 2011. Caterpillar plans to set up a new joint venture and expand its parts business in China. Starbucks set the target of opening 1,500 new shops on the Chinese mainland by 2015. The Carlyle Group announced it would create a kind of investment fund for China and increase investment in Chinese industries.
As America's second largest trading partner, China is also the market that has seen the fastest growth in export volume with the United States. According to the latest statistics by China's General Administration of Customs, China-U.S. trade totaled 385.3 billion U.S. dollars in 2010, an annual increase of 30 percent. In terms of the total trade volume, China's imports from the United States accounted for 102.04 billion U.S. dollars, a year-on-year increase of 31.7 percent.
Statistics from the U.S. Chamber of Commerce show that U.S. goods exports to China have jumped from 19.2 billion in 2001 to 71.5 billion U.S. dollars in 2008, an increase of 272 percent. However the increase was only 72 percent in terms of the exports to other countries and regions. In the services trade, the United States has been running a trade surplus with China. The United States registered a trade surplus of 7.43 billion dollars in 2009, four times higher than in 2001.
The United States benefited from China's rapid economic growth through exports to China, with all states having reaped tangible profits. China is among the top five largest export markets of 40 American states. There has been a 330 percent increase of America's manufacturing and agricultural exports to China, much higher than U.S. trade volume to other countries and regions, which stands merely at 29 percent.
China now has become the sole overseas market for U.S. beans and cotton and the key export market for its mechanical products, such as autos and planes. The report by the U.S.-China Business Council (USCBC) in 2010 said that China continues to be the key export destination for the U.S. manufacturing industry and agriculture. Zhou Shijian, a senior research fellow with the Center for U.S.-China Relations at Tsinghua University noted that Obama would hardly live up to his promise of doubling American exports in the next five years without increasing trade ties with China.
US benefits from economic, trade cooperation with China overall
Economic and trade cooperation between the United States and China not only directly benefits U.S. exports and investments in China, but also contributes to America's extensive and tremendous macroeconomic interests, which are primarily represented by the large improvements to American consumers' way of life due to Chinese exports.
According to statistics, daily consumables, such as clothing, shoes, socks, toys, bags and electronic equipments, account for 75 percent of the Chinese goods entering the American market. All those Chinese goods, which are very competitive in both quality and price, greatly enrich the American people's lives and expand their choices, especially for those moderate and low-income citizens. At the same time, they help the United States to maintain lower inflation under the pressure of heavy "double deficits."
A study released by the American financial services firm Morgan Stanley shows Americans saved more than 300 U.S. dollars per capita by purchasing products from China in the year 2009. Another study launched by the USCBC shows the U.S. GDP increased by 0.7 percent higher than usual in 2010 due to increased U.S. trade and investment in China. Meanwhile, commodity prices will also drop 0.8 percent because of that. The sum of both effects is equal to adding 1,000 U.S. dollars to every American family's disposable income every year.
Liu Haiquan, the director of the Comprehensive Department of China's Ministry of Commerce, said: "Chinese goods can meet U.S. consumers' needs and are helpful for stabilizing prices of the American market, reducing the risk of inflation and maintaining the smooth operation of the economy."
Sino-U.S. economic and trade cooperation also increased the number of jobs in the United States. Gary Faye Locke, U.S. secretary of commerce, said in his speech at the USCBC in last October that "every 1 percent increase in exports to Asia will bring 100,000 jobs." He said nearly 2.6 million job opportunities were added in the country from 2001 to 2008 thanks to U.S. exports to China.
So far, China holds the largest amount of U.S. bonds. According to the U.S. Treasury, China held as much as 906.8 billion U.S. dollars of U.S. bonds by last October. During the global financial crisis, China did not sell those bonds but continued to buy them, which played an important role in maintaining a stable U.S. financial market. China's purchase of bonds strengthened liquidity, relieved the credit squeeze, accelerated trade financing and helped the U.S. to realize its macro-control targets.
