Some current issues in US-China trade relations

This paper reviews some of the key issues in recent U.S.-China trade relations and outlines the macro environment for trade between the two, including their economic ties with Hong Kong and Taiwan. It first provides an overview of U.S.-China trade, including a description of historical trends, industry distribution, and the involvement of Hong Kong and Taiwan. The major sources of foreign direct investment in China are also discussed. The paper then goes on to discuss current key issues in U.S.-China trade, including China's application to the World Trade Organization (WTO), China's most-favored-nation (MFN) status, intellectual property rights protection, and the mounting U.S. trade deficit with China. The impact of these issues on Taiwan and Hong Kong is highlighted where appropriate. The paper also discusses briefly the future prospects of U.S. China trade and related opportunities for Taiwanese firms.