7 Economics_Study_Flashcards
What major economic reform allowed China to become a net exporter?
The 1978 economic reform and the establishment of Special Economic Zones (SEZs) and Export Processing Zones (EPZs).
What were the main drivers of China’s international trade after WTO accession?
Tariff reductions, protection for intellectual property, and increased transparency in laws and regulations.
When did U.S.-China trade relations normalize, and what was a key milestone in 2001?
Trade normalized in 1979; in 2001, China joined the WTO.
What are some benefits the U.S. gains from trade with China?
Lower consumer prices, increased corporate profits from accessing China’s market, and higher household purchasing power.
What issues has the U.S. faced due to trade with China?
Job losses in manufacturing, national security concerns, subsidization issues, currency manipulation, and labor rights violations.
Define ‘dumping’ in the context of international trade.
Dumping refers to selling products in a foreign market at a price lower than in the domestic market or below production costs.
What is an antidumping duty, and when is it applied?
It is a tariff applied when a product is sold below its local market price or production cost in the export market.
How did China respond to U.S. antidumping duties on solar panels?
China moved production to Taiwan and later to countries like Malaysia, Singapore, and South Korea.
What are the disadvantages of a trade deficit?
Job losses, dependence on foreign goods, negative economic growth impacts, currency pressure, and debt accumulation.
What is the significance of the Regional Comprehensive Economic Partnership (RCEP)?
RCEP aims to boost trade in the Indo-Pacific, promote industrial upgrades, and eliminate tariffs for better regional integration.
What are some concerns the EU has about trade with China?
Concerns include China’s protectionism, overcapacity, restricted market access, and insufficient IP rights enforcement.
What impact has the 2016 THAAD conflict had on South Korea-China relations?
It led to South Korea diversifying risks by moving production and scaling onshoring in key sectors like semiconductors.
How has Russia’s dependency on China grown post-Ukraine invasion?
Sanctions have made China Russia’s main trade partner, with increased reliance on yuan and trade in raw materials.
What are the shared concerns of the U.S. and EU in their trade relations with China?
Both are concerned about unfair trade practices, lack of market transparency, and intellectual property rights issues.
What is the Comprehensive Agreement on Investment (CAI) between the EU and China?
An agreement to open China’s internal market to the EU, proposed in 2013 but not yet ratified.
