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11:04, 20-Jul-2017
How Sino-American trade relations have progressed over 50 years
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By CGTN’s Jim Spellman
The US and China’s modern trading relationship has spanned nearly 50 years. Their bilateral trade ties are one of the most important in the world, and the two sides are at a crossroads as leaders gathered in Washington for the US-China Comprehensive Economic Dialogue.
The modern economic relationship between China and the United States began in 1971 when the US lifted a two-decade long trade embargo, removing barriers in place following World War Two.
A year later, then President Richard Nixon visited China and met with Chairman Mao Zedong, ushering in a new era of Sino-American relations.
CGTN Photo
CGTN Photo
By the end of the 1970s, trade between the two countries was doubling each year.
In 1980, both sides granted the other “Most Favored Nation” trading status. Through the 80’s, reforms in China led to even more trade, with special economic zones established in Guangdong and Fujian provinces accelerating the pace.
The 1990s saw further opening and market-based reforms.
In 2001, China became a member of the World Trade Organization (WTO), and Chinese imports to the US soared.
In 2006, the first US-China Strategic Economic Dialogue was held in Beijing.
China became the biggest trading partner with the US in 2015, surpassing neighboring Canada.
CGTN Photo
CGTN Photo
Trade in goods has grown from almost nothing in 1971 to nearly 600 billion US dollars in 2016.
China is now the largest supplier of goods imported by the US and the third largest export market for US products, behind Mexico and Canada.
Despite occasional political tensions between the two countries, trade relationships remain vital to the world economy and is in the interests of both countries to see it flourishing.
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