China as Most Favored Nation

14 Pages 3384 Words

to be a significant market for the U.S. in the future. China is one of the world's fastest growing economies, and with its efforts to reform, improve, and modernize its economy could come a significant increase in demand for imports. Infrastructure development, in particular, has been made a major priority, and the Chinese government has also announced that foreign firms will be allowed to participate in a wide variety of projects. This is very important to the United States because it mean that there is for the foreseeable future a market for their goods and services in China. Also as a result of the most-favored-nation trade status that China currently holds it makes the opportunity for international business ventures there even that much interesting because of the possibility of high profits.

Another advantage for the United States is in the area of imports from China. The surge in United States imports of Chinese products over the past few years can be largely explained by two factors. First, China's production of low-cost, highly labor...