Can US-China trade survive the crisis?
As tensions continue between the United States and China over the downed US spy plane, BBC News Online examines whether international trade could be used by the US to put pressure on Beijing to return the plane. How important is trade between the US and China? China’s trade with the United States has been increasing rapidly in the past decade. The United States is China’s biggest trading partner. And China has replaced Japan as the country with the largest trade deficit with the United States. The rapid expansion of Chinese imports has been of concern to US unions, who fear that jobs in many basic industries like clothing, toys, and household goods may be at jeopardy. Why does trade matter to China? The expansion of foreign trade has been the driving force behind China’s rapid economic growth since 1975. China’s fast-growing export industries have provided employment for millions of workers and helped absorb surplus population from the countryside. China hopes that this expansion – and
