Since Chinese exports to the United States were six times greater than America's exports to China in 2006, it was a clear reflection of America's most imbalanced trading relationship. The debate on whether or not the United States should trade with China began in the early 1990s when America's economy was much healthier and Chinese exports to the United States were smaller. In the recent years, this debate has risen to include concerns on whether China's trade policies are resulting in the transference and loss of many U.S. jobs.

Reasons Why the U.S. Should Not Trade with China:

Given the concern by policymakers and the entire American public, the United States should not trade with China because of various reasons which have a huge impact on the American population. These reasons include:

Trade Imbalance:

As mentioned earlier, this is one of the reasons why the United States should not trade with China since it results in widespread trade barriers. The trade imbalance is as a result of China adopting policies that promote huge subsidization of export production and sustaining stiff non-tariff hindrances to imports. Furthermore, the trade imbalance has been as a result of China's currency pegged policy that doesn't allow Chinese currency to move with greater flexibility in foreign exchange markets. These policies adopted by the Chinese government have made its trade relationship with the U.S. To be regarded as America's most imbalanced one and continues to hurt many Americans.

Negative Impacts:

While trade with China doesn't really harm America's economy,...

According to the findings of a research by three academic economists earlier this year, U.S. trade with China results in several negative effects in the form of lost jobs, lower labor-force involvement and lower wages (Trumbull par, 6). While this loss of jobs is particularly in the area of manufacturing factories, the negative impact of wages is spread through the entire local economies in America. The magnitude of these negative impacts from the trade relationship between these two countries is surprising for many academic economists and analysts alike.
Conclusion:

While the debate rages on, there are suggestions for the United States government to adopt a tougher and more disciplinary policy in its trade policies particularly with China. Some policy makers in the United States' Congress have suggested that America should adopt a stronger-armed approach including penalties if it's to continue trading with China.

Works Cited:

Morrison, Wayne M. "China-U.S. Trade Issues." Federation of American Scientists. Federation of American Scientists, 1 July 2005. Web. 13 May 2011. .

Scott, Robert E. "Costly Trade With China: Millions of U.S. Jobs Displaced with Net Job Loss in Every State." Economic Policy Institute: Research and Ideas for Shared Prosperity. Economic Policy Institute, 9 Oct. 2007. Web. 13 May 2011. .

Trumbull, Mark. "How Much Does U.S.-China Trade Hurt American Workers? Slowly, a Clearer Picture." The Christian Science Monitor. The Christian Science Monitor, 10 May 2011. Web. 13 May 2011. .