The relation shared by these 2 countries is based on mutual benefit. They do not agree with each other on their political views. However, there are a number of common grounds amongst the two nations, such as the fight against terrorism, nuclear war etc which is currently binding them in the US-China foreign relations.

The first signs of the US China relationship date back to as old as 1784 when the first Chinese trader ship called Empress of China used to transport exotic spices, porcelain, cotton, and silks to the United States. Since then there has been considerable trade between the 2 countries. Ever since then, because of many wars such as the Vietnam War, Soviet War, and World War II, the trade relations between the two countries started to deteriorate, the effect of which was felt by both countries. But soon this came to an end with the emergence of the new world and new ideas wherein economy and growth were the main concerns of the two nations.

China and the US are fighting the war against terrorism together especially after the terrorist attacks on US in September 2001. Furthermore, they have also agreed to work in unison to ban the production of fissile materials used in making nuclear weapons and China has signed the Nuclear Non-Proliferation Treaty (NPT) and the Comprehensive Test Ban Treaty in 1996.

Today, US give China preferential nation status in the commercial sector as many multinational companies are investing a lot of money in China. This is because the labor market is very cheap in China and there is no shortage of skilled manpower. This has made China the second largest receiver of foreign direct investment after US.

Did you know that China is world?s 2nd largest economy? It is a growing market for the US products and its service sector. While the global growth is going down, China economy is expanding. The income levels are rising and almost 1.3 billion of its consumers have demand related to the made in USA goods. The US exports to China rose by 76% between 2000-2003. Surprisingly at the same time sales across the globe were declining at the rate of 9%. At present China happens to be the 6th largest market for the US exports and is its 3rd largest trading partner. The spurt of growth in the US sales to China is benefiting the US companies.

In spite of all the differences between US and China one point is certain, that both the countries are working towards maintaining a harmonious relationship with each other which is beneficial to the world economy at large. In order to come to an amicable resolution, a US China Senior Dialogue was carried out so that both the countries could sort out their differences and talk about matters on reciprocal concern which is now being carried by Hilary Clinton.

“History tells us that openness and cooperation is all the more important amidst a crisis,” Chinese Commerce Minister Chen Deming said in a speech just before China Telecom signed contracts with Cisco, Microsoft, Dell, Emerson and Alcatel-Lucent.

“Trade protectionism will not restore growth. On the contrary, it will exacerbate recession,” Chen said.

Another company, China Mobile also closed deals with HP, Alcatel-Lucent, Oracle, Emerson, Sun Microsystems and Cisco, while China Construction Bank signed with Microsoft, IBM, HP, and Cisco. There were also deals between Ford and Amway with their Chinese counterparts. Details of the deals were not released at the event.

Alcatel-Lucent said it had signed a $1 billion agreement with China Mobile and a $700 million deal with China Telecom to provide network upgrades, integration and maintenance services in 2009.

Chen said the contracts showed China’s “unequivocal” opposition to protectionism and how growth in the Chinese economy would help create jobs abroad.

The three Chinese trade delegations to the U.S. included large State-owned enterprises and private corporations in mechanical and electronic engineering, light industry and investment. They travelled to 14 states, looking for opportunities for trade and investment in small business, environmental protection, high technology and energy conservation.

China’s persistent trade surplus with the United States, a source of tension between Beijing and Washington, hit a record $266.3 billion in 2008.

However, the global recession has hurt both countries’ exports and increased the temptation for governments around the world to raise import barriers to protect local companies.

The visit was an opportunity for Chen to acquaint himself with his US counterpart Locke and US Trade Representative Ron Kirk. Both of the US officials took office last month.

On the other hand, Locke and Energy Secretary Steven Chu, two Chinese Americans in Obama’s cabinet, are expected to visit China in September. Locke said he may be accompanied by a large US delegation.

U.S. Trade Representative Ron Kirk said he looked forward to working with Chen to finish the long-running Doha round of world trade talks and to tackle bilateral trade disputes through the U.S.-China Joint Commission on Commerce and Trade.

While China turns to high-profile channels to communicate with the US, it is prepared to protect the interests of its companies.

“China will resort to the World Trade Organization if the US takes unfair actions against Chinese companies,” Chen said.

The US International Trade Commission on Thursday approved anti-dumping duties ranging from 74 to 101 percent on welded steel line pipe from China that it said was sold at unfairly low prices.

Source : Konaxis