SED Critical to China/U.S. Economic Growthby Tim Manni
China’s exports dropped in November for the first time in seven years — further evidence of the global economic strain. China, the world’s fourth largest economy, experienced an export contraction of 2.2% from one year ago, and saw imports decline by 17.9% — the largest decrease since 1995. The latest U.S. trade numbers report nearly six percent declines in both exports and imports for September (October’s numbers will be released tomorrow).
Under President Bush, the U.S. and Chinese Governments established the U.S.-China Strategic Economic Dialogue (SED), a strategy designed to prioritize “issues in the broader context of our bilateral economic relationship, the SED gives direction and creates momentum for the many existing bilateral mechanisms we use to foster cooperation and resolve concerns across the spectrum of economic issues.”
The two countries completed their fifth SED meeting last Friday:
“Part of Secretary Paulson’s legacy will be the creation of a high-level, forward-looking dialogue between the United States and what will soon be the world’s second-largest economy, China. The past few months have reminded us that our economies are greatly interdependent, and success for each of us in the years ahead will require more engagement and cooperation, not less,” [US-China Business Council President John] Frisbie said.
Believe it or not, the U.S.’s top trading partner (both imports and exports) is Canada, China is number two, followed by Mexico and Japan. While China’s trade number have been regarded as “horrifying,” you can surmise the numbers are purely an accurate reflection of how global economies struggle as a whole.