Give your thoughts on the information below. Do you agree or disagree and why? Please be brief, no more than a paragraph and a half.

The United States and China have had an on going trade relationship since 1979. This relationship has had many ups and downs over the years but from 1979 to 2017 total amount of exports and imports increased from $4 billion to $600 billion. We are all very familiar with the common "Made in China" stamps and tags on so many goods that we buy here in the US that there is no doubt that the imports and exports with China play a huge role the US's GDP.

Looking first at US imports from China, according to the United States Trade Representative, US imports from China totaled roughly $434.7 billion in 2020. Since imports are subtracted out of GDP, this number may not directly affect the US GDP, however there is certainly an indirect impact. So many companies choose to manufacture their goods in China due to reduced costs compared to manufacturing in the US, however the imports we receive from China takes away $434.7 billion out of the US GDP. Now that is not to say that the imports from China don't serve a purpose but this is the mindset for those who are pro "Made in the USA". In their minds it provides more jobs in the US and raises GDP to import less goods from China.

Looking next at US exports to China, according to the United States Trade Representative, US exports to China totaled about $124.5 billion in 2020. Anything that the US exports goes directly to GDP, which seems like a positive. In the case with our trade relationship with China, the US has a trade deficit with China of over $300 billion. So while it is good that the US brings in money through exports to China, it seems like overall the trade realtionship is not necessarily beneficial to the US from a GDP standpoint.

Additionally, in 2018 the US placed tariffs on $300 billion worth of imports from China which caused a bit of a tariff war between the US and China. These tariffs did not seem to have a huge positive effect for the US as the US still faced a trade deficit in 2020 as I mentioned earlier. On top of the tariff war, there is growing concern about China and their role geopolitically with threats of invading Taiwan, which would have a big affect on the US's ability to import electronics and metals from Taiwan.

It seems that while US companies can manufacture goods cheaper in China, the trade agreements and relationship between the US and China are growing less and less positive for the US. Especially as threats to Taiwan and the South China Sea increase, the US will have to take a political stance that may severely affect the trade relationship, so it would be in the US's best interest to slowly try and decrease trade with China wherever possible.

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