The current trade commotion between the U.S. and China is causing anxiety for U.S. companies and is interwoven with complexity. While the total U.S.-China merchandise trade rose from $2 billion in 1979 to $636 billion in 2017, the imbalance is extraordinarily in China’s favor. China is currently the United States’ largest merchandise trading partner, its third-largest export market, and its biggest source of imports. In 2015, sales by U.S. foreign affiliates in China totaled $482 billion. If these merchandise sales had been manufactured in the U.S. and exported to China, thousands of U.S. jobs would be saved.
Many U.S. firms view participation in China’s market as critical to their global competitiveness, but where is the data to support that view? U.S. imports of lower-cost goods from China benefit U.S. consumers, but at what cost to U.S. manufacturing jobs and the supply chain that supports them. U.S. firms that use China as the final point of assembly for their products or use Chinese-made inputs for production in the United States, can lower their costs. China is also the largest foreign holder of U.S. Treasury securities (at nearly $1.2 trillion as of December 2017). China’s purchases of U.S. debt securities help keep U.S. interest rates low. The complexities, co-dependence and nuances of China trade issues are myriad with no easy solutions.
According to Congress Research Service, from the U.S. perspective, many trade tensions stem from China’s incomplete transition to a free market economy. Major areas of concern expressed by U.S. policymakers and stakeholders include China’s alleged widespread cyber economic espionage against U.S. firms; relatively ineffective record of enforcing intellectual property rights (IPR); discriminatory innovation policies; mixed record on implementing its World Trade Organization (WTO) obligations; extensive use of industrial policies (such as subsidies and trade and investment barriers) to promote and protect industries favored by the government; and interventionist policies to influence the value of its currency. Many U.S. policymakers argue that such policies adversely impact U.S. economic interests and have contributed to U.S. job losses in some sectors.
How will all this commotion affect your business? How can you navigate this current contentious trade relationship? These topics will be explored in the upcoming Illinois BIS seminar on June 26, 2018 in Naperville.
Whether a company is directly doing business in China, or in an industry that is affected by U.S.-China relations, the future ramifications of the currently contentious trade relationship are unclear. This seminar is designed to guide your company successfully through the next 12 to 18 months.
The workshop will focus on the critical information that you need to know to give you ideas and choices you can begin implementing immediately.
- How Did We Get Here? The Nature of the Current US – China Trade Dispute & How to Plan for Your Business
- Dueling Tariffs: Why American and Chinese Tariffs Have Nothing in Common and How You Can Work In Between The Differences
- One Game, Two Sets of Rules, Two Outcomes: Why U.S. – China Trade Relations Will Never Be the Same & How It Will Affect Your Company
- Recommendations Your Company Can Use to Reduce Anxiety and Manage Calamity in the U.S. – China Trade Relationship
- Open Forum: This is an opportunity to get direct answers to issues that will affect your business.
This seminar offers an opportunity to get direct answers to issues that will affect your business from China expert, Michael Sacharski. Topics may range from geopolitical issues, to a variety of business questions, to American companies in China or Chinese companies in Illinois, to individual experiences.