The U.S. and China has achieved a win-win situation in outsourcing
Source:  View: 3099 Date: 2011-08-26

According to the date from China Business Council, the U.S. exports of electronics, agricultural and other products to China increased 468% to $91.9 billion from 2000 to 2010. However, the exports amount to the rest of the world raised 55%. China has become the USA’s third-largest export market which behind Canada and Mexico and its fastest-growing. And Erin Ennis, the vice president of the U.S.-China Business Council thought that the more the U.S. export to China, the more jobs sustain in the U.S.

However, the U.S. has a record trade deficit with China, meaning that it buys obviously more than it sells. According to the U.S. International Trade Commission, the U.S. imported $364.9 billion worth of Chinese goods, nearly four times the value of its exports to China in 2010. The U.S. manufacturers say that outsourcing production to China is costing Americans jobs. Jobs are being lost, for instance, in industries such as apparel manufacturing as production moves to factories in China.

The US Federal Reserve Bank of San Francisco released it research in this month that for every dollar spent on a China-made item, 55 cents go to U.S. businesses for services such as marketing and sales. Last year, 2.7% of U.S. consumer spending went to products made in China, according to the study.

Yet the Trade Partnership, a firm in Washington, D.C. consults with businesses on trade issues, estimates that nearly 1 million domestic jobs exist because the U.S. imports goods from China. “Because we import from China, prices are cheaper, consumers have more money in their pocket and they go out and spend more,” generating a greater number of US jobs than are lost, says Laura Baughman, president of the Trade Partnership.

Baughman also says that if the U.S. pares back on foreign-made goods, it could hurt domestic firms as well as Chinese manufacturers, because products such as American-made semiconductors are sent abroad to be built into TVs and computers, then come back with the “Made in China” logo.

The U.S is the one of the biggest outsourcer country for China. At the same time, U.S. acting an important role of consumer market of China made products which being produced under the assignment of U.S. Therefore, the import-export and outsourcing relationship between China and the U.S. are very closely. China needs more projects to develop its economies. The U.S. needs outsource its business, for example manufacturing business to save costs. Moreover, according to the data discussed above, even if U.S lost some jobs because outsourcing, while, just due to outsource business and buy the China made products, the U.S. received more job opportunities than it lost, so as to gain more profits. We come to a conclusion that the outsourcing business between U.S. and China affected by the imports and exports relationship between the both sides benefit for them. The U.S. and China has achieved a win-win situation.
 

Devott Publications
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