High-Technology Trade between China and the US


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China and the US have distinctively developed their own strategies when it comes to technology and trade. Specifically, China wants to further adopt technology in importing while the US chose otherwise and demands reduced trade barriers. The two nations seem to have minimal compromise when it comes to being related to trade. Also, the US is faced with a challenge to enter the Chinese market which results in having minimal capabilities for trade.

The technology of the US is promising but with the prohibitions in China such as social media and online services, the partnerships and trade can be quite limited. It is with intention of growth for the US to suggest a better trade and investment relationship between China since the product and the market has already evolved. Furthermore, some regulations have been outdated and policies for high-technology items must be included. This would definitely fill in the gaps for the trade deficit of the US. The trade gap between China and the US is almost $140 billion which the government has confirmed.

China has been developing technology to greater heights. The country has seen potential in the Internet, data, and manufacturing. Furthermore, China is looking into robotics which gives them an edge to other countries in terms of output and production. China’s five-year plan includes its path to maximize technology through different initiatives. Consequently, the US government is quite hesitant to become more open to accepting products from China due to its economic privacy. Having a better access to the Chinese market will, however, possibly change how American firms act towards trading.

Additionally, the cyber security law that was implemented in China adds to the difficulty in reaching their market for the US and other high-tech firms all over. As long as the government is on hold of the business in China, other international entities who are interested in reaching out would need to face numerous processes. Most importantly, the government handling security limits importing due to the presence of domestic servers that prioritize Chinese establishments.

Other firms are required to pass through China’s security as initial compliance to move data and technology to the country. The US is open to expanding their own advancements in technology. China needs to loosen up to attract more investors and trade as the US is now reluctant to be related to China’s trade and it in and outs.

Trade and investment between China and the US have faced a fair share of good and bad results. The two have a history wherein China entered an economic turmoil due to the Nanjing Massacre and the US aided the country to be back on track. China was greatly affected by the violence of the Japanese during the war. The government worked on economic reforms and since then, China developed to become a powerful nation. The US is the biggest economy in the entire world and China is currently considered as a competitor. Although the two have been working together in other industries aside from technology, only one can gain the hegemony status resulting too subtle conflicts.

China is not expected to make drastic changes to compensate for the interest of the US. However, it is seen that China is only protecting its technology industry, opting to be more secure and in control of over all the system. This intention is quite reasonable; however, Chinese government policies would somehow need to be reestablished at some point to be more welcoming to change and development. China is not complete and well in all resources and a trade war with the US will do no good to their economy.


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