United States Trade Policy With Term Paper

Length: 13 pages Sources: 60 Subject: Economics Type: Term Paper Paper: #76454115 Related Topics: World Trade Organization, President Of The United States, Free Trade, United States History
Excerpt from Term Paper :

Farmers are stated to have become "risk takers, created new markets, developed rural industries and migrated to urban areas. Farmers were no longer slaves to the state..." (1996)

Dorn notes the statement of Jianying Zha (1994:202) in the book "China Pop" that:

The economic reforms has created new opportunities, new dreams, and to some extent, a new atmosphere and mindsets. The old control system has weakened in many areas, especially the spheres of economy and lifestyle. There is a growing sense of increased space for personal freedom."

Dorn states that the optimism of Zha would certain be shared by anyone who has: "...seen the vibrancy of the market, the dynamism of the people, and the rapid growth of urban areas..." (1996) Dorn states: "Commercial life in China is evolving naturally as people flee the countryside for improved living conditions and the chance to strike it rich in the growing nonstate sector. Villages that were once small fishing centers along the southern coast are now booming with the flow of trade and people." (1996) Additionally related is that: "Ambitious young people want to become capitalists, not communists. A recent survey found that young people ranked being an entrepreneur first among 16 job choices and employment with the national government eighth (Kristof 1993). Freer labor markets have led to a growing demand among college students for business courses, and universities are responding. The CCP has lost much of its credibility and is no longer the major route to success." (Dorn, 1996) Freedom to trade has led to an expansion in the middle class which is a class who holds a very large stake in the future of China. (Dorn, paraphrased) Dorn writes: "If democratization is to proceed in China, the government needs to allow further experimentation with new forms of ownership." (1996) After having allowed this, the country of China will witness a natural progression via trade liberalization into democratization. Dorn states: "A lot of the educated urban Chinese echo this way of thinking." (1996)


There is reason to believe, therefore, that institutional change in China will bring about what Princeton University professor Pei Minxin (1995) has called "creeping democratization." (1996) According to Dorn the work of Pei (1994) held that: "...the gradual development of China's legal system toward affording greater protection for persons and property, the growing independence and educational levels of members of the National People's Congress, and the recent experiments with self-government at the grassroots level will help move China toward a more open and democratic society. He points to the upward mobility of ordinary people, occasioned by the deepening of market reform, and to the positive impact of China's "open-door" policy on political norms. In his view, public opinion and knowledge of Western liberal traditions, such as the rule of law, "have set implicit limits on the state's use of power" and have promoted the democratization of the legal system. People are starting to use the court system to contest government actions that affect their lives, liberty, and property. There has been a sharp rise in the number of civil lawsuits against the state, and individuals are beginning to win -- perhaps as many as 20% of -- their cases, according to official sources." Pei 1994: 12).

The opening of the legal system is important because it paves the way for the transition from "rule by law" to "rule of law." (Dorn, 1996) Marcus Brauchli writes in the 1995 Wall Street Journal that:

The state's steel-clad monopoly on the legal process, which makes the courts just another arm of government, is corroding. China's economic liberalization... has spawned a parallel legal reform that raises the prospect of rule of, not merely by, law."

Brauchuli (1995) went on to state that it is "legal ambiguity..." [which] "...remains a 'ruthless weapon for harassing the population." Dorn notes the statement of Brauchuli who recognizes that fact that: "...legal ambiguity remains a 'ruthless weapon' for harassing the population. Until that facet of China's institutional structure changes, no one's rights will be secure." (1996)

The work of Ying Ma relates that in spite...


Beijing controls and stunts precisely those instruments that contribute to the success of broad-cased domestic opposition: It cracks down on political opponents, co-opts potential ones, and indoctrinates the masses. It is eagerly attempting to maximize economic modernization while minimizing its liberalizing effects." (Ma, 2007) Ying Ma states that there are several "concrete steps" that might assist promotion of democracy in China. The first of these steps is that" the United States should not wade into the quandary of slowing Chinese economic growth and cannot stop the Chinese government from institutionalization itself or co-opting its rival political groups,..." however it is possible that the U.S. can do more toward combating "other sources of authoritarian resilience by strengthening China's political opposition and countering the regime's restriction of coordination goods that range from press freedom to the ability to organize." (Ma, 2007) Secondly, Ying ma states that the U.S. should concentrate on an effort of confrontation of the government of China concerning the Chinese governments: "...aggressive ideological indoctrination of its citizens against democratization." (Ma, 2007) Promotion of democracy in China could be accomplished through a U.S. provision of funding and support for "the free flow of information through the Chinese Internet." (Ma, 2007)

In the work of Ergul Haliscelik entitled: "The World Bank the European Union's Cooperation on China" states: "Neither isolationism nor unilateralism is a credible response to globalization. During the last two decades China has experienced tremendous changes. These changes affect nearly all aspects of Chinese society, as well as China's relations with the outside world." (2006) Haliscelik (2006) reveals the current policy of the EU toward China which has been a policy termed "A Maturing Partnership: Shared Interest and Challenges in EU-China Relations." (Haliscelik, 2006) the policy has the following goals:

Engage China further, both bilaterally and on the world stage, through an upgraded political dialogue;

Support China's transition to an open society based upon the rule of law and respect for human rights;

Encourage the integration of China into the world economy by bringing it fully into the world trading system, and supporting the process of economic and social reform that is continuing in China; and Raise the EU's profile in China"

It is additionally related that EU companies have invested significantly in China with new annual flows of utilized FDI averaging approximately $4.2 billion in the past five years which brings EU FDI stocks to above $35 billion. The following figure illustrates these specific trade statistics.

Merchandise Trade with China (Imports and Exports)

2000-2004 and Average Growth Percentage

EU25 Merchandise Trade with China 2000 2001 2002 2003 2004 Average growth 2000- 2004 (%)

Imports 74.369

81.619 89.606-105.397-126.737 +14.3

Exports 25.758

Balance -48.610 -51.065 -54.737 -64.228

Source: Haliscelik (2006)

The following table labeled Figure 2 illustrates the total in $billions of China's Top Five Trading Partners 2004.

Total in $billion of China's 2004 Top Five Trading Partners

Source: Haliscelik (2006)

Haliscelik (2006) states that a major theme in the relations of the EU and China have been surrounding human rights. The European Commission has set out a 'Country Strategy Paper' (CSP) which is a framework for the EU and China period of cooperation. The CSP is stead to have proposed "three priority areas for action" which are inclusive of:

1) Economic and social reform;

2) Sustainable development (environmental protection, social development, economic growth); and 3) Good governance (e.g. The rule of law, the fostering of grass-roots democracy and civil society, and the protection of economic, social, political and civil rights)."

In a 2005 presentation by Daniel Griswold stated is that trade policy is "...ultimately about more than jobs and GDP. it's also about the kind of wider world we want to live in. One blessings of globalization is the reduction of global poverty. Trade promotes faster economic growth, and growth reduces poverty." (2005) the country of China has demonstrated the greatest poverty reduction program in the world's history due to "domestic reforms and trade liberalization."(2005) Griswold concludes by stating that globalization is "tilling the soil for democracy and greater respect for human rights. Our best hope is to promote political and civil liberty in countries such as China..."

Griswold call the integration of China into the global economy "one of the great stories of our time." Much of the efforts at the Center for Trade Policy Studies has been focused toward assisting Americans in comprehending the positive aspects of trade with China. The Hoover Institution: 'China Leadership Monitor' initiative reported by Joseph Fewsmith in the work entitled: "The Political Implications of China's Growing Middle Class" states:

China's middle class has developed rapidly over the past three decades. If one assumes that there was no one, or at least very few…

Sources Used in Documents:


Daniel T. Griswold, CATO Institute, (2005)"Trading Tyranny for Freedon: How Open Markets Till the Soil for Democracy."

Dorn, James a. (1996) Trade and Human Rights: The Case of China. The Cato Journal Vol. 16 No.1. Spring-Summer 1996 Online available at http://www.cato.org/pubs/journal/cj16n1-5.html

Fewsmith, Joseph (2007) the Political Implications of China's Growing Middle Class. China Leadership Monitor. No. 21 the Hoover Institution. Online available at http://www.hoover.org/publications/clm/issues/8535722.html

Gresser, Edward (2006) Trading in Myth - Blueprint Magazine 9 February 9, 2006. Progressive Policy Institute. Online available at http://www.ppionline.org/ppi_ci.cfm?knlgAreaID=108&subsecID=206&contentID=253726

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