Comparison of US and China patterns of trade Essay

Comparison of US and China patterns of trade - Essay Example In 2012, the trade in private services and goods between the U.S. and China totaled to $579 billion. In that year, trade between the two partners (U.S. and China) represented a total of $141 billion of exports and $439 billion of total imports. As at 2014, China was America’s second greatest trading partner. In 2013, China was the third-largest export market for the U.S. In that year, 2013, China remained the greatest goods supplier of imports to the U.S. there was a recorded trade deficit of $318.4 billion for U.S. goods trade with China in 2013. America’s Foreign Direct Investment (FDI) in 2012 amounted to $51.4 billion according to data by the Office of the U.S. Trade Representative (2014). Based on the assessment, China is the leading exporter of manufactured goods to various nations in the global context such as EU and the United States, just ahead of the America and Germany. Many business practitioners believe that Chinese manufacturers experience direct competition against corporations in North America and the European Union. In the course of examining and exploring this skeptical aspect, it is vital to analyze the product components of trades from China before comparing it with the product components of trades from the US and EU. Business entities and nations have the tendency to adopt and integrate the concept of differentiation in addressing demands and needs of the consumers. In this context, there tends to be diversity in the mode and mechanism towards the achievement of the goals and targets. China focuses on exporting various products such as iron and steel, pharmaceuticals, office and telecom equipment. Besides, China transacts on automobiles, machinery, textiles, and clothing.