To understand the current scenario of China-US trade or business environment we must first do a brief analysis on the distinct patterns trade of the United States and China. Since the beginning of the era China is a country rich in resources and developments such as agriculture, science, banking system, strong monetary system, resilient military and so on. Their land has been attacked several times by joint foreign attacks due to the allure of the lucrative resources. China's economic system has been repeatedly plagued by foreign trade, wars and discriminatory treaties. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original EssayDespite unresolved situations until the 1950s, China's economy is booming today, and their so-called socialist economic system has become a model for many in developed countries like Bangladesh. The country is expanding its technology so fast that other countries see it as a challenge to compete with China. China's most vibrant technology sector is replica products. It replicates almost all the most renowned brands in the world while offering a very low price. On the other hand, China is an export-oriented country, especially steel export. It also exports raw or primary chips for high-tech products. China's top ten exporting goods are: electrical machinery or equipment, machinery including computers, furniture, clothing, knitwear, optical equipment, plastic items, vehicles, iron and steel items and the last one is toys or games. Of these, the unique contribution of electric cars amounts to almost 26.4% of total export earnings (Workman, 2018). Likewise, China is expanding its foreign direct investment into developing and developing countries. Furthermore, some developing countries are heavily indebted to China due to various types of loans relating to construction and other development projects. For example, Pakistan is seeking a bailout from the International Monetary Fund. But US is directing IMF not to give bailout to Pakistan as China will benefit from the bailout. China's foreign exchange reserves now amount to $3.1 trillion, a gigantic figure compared to that of the United States, which currently has $120.493 billion (Trading Economics, ND). In 2009, China became the third largest market for U.S. exports. The main products exported from the United States to China are: - aerospace products and parts, - oilseeds and grains, motor vehicles, - semiconductors and other electronic components, - oil and gas, - waste and scrap, - navigation instruments, measurement , medicine and control, - basic chemicals, - resin, synthetic rubber, - artificial and synthetic fibers, - pharmaceuticals and medicines. Until 2009, the United States was the main beneficiary of the US-China trade relationship, but after 2009, China tries to re-establish the trade balance. But now the trade war hasn't just broken out for economic reasons. There are basically two reasons behind the trade war:-1. Economic reason2. Political reason. Overall we can say that the political-economic reason. It is known to everyone that China's economy is booming and has already become the most powerful nation state in Asia. Economists have predicted that China's economy will surpass that of the United States by 2050. It is common in the international arena that economic supremacy leads to greater dominancepolitical. Therefore, the possibility of China replacing the US position cannot be ignored. By now, China is trying to increase its dominance over South Asian countries and other parts of the world through the Belt and Road initiative, which is often criticized by the United States. In fear of losing dominance over the entire world, US President Donald Trump took the controversial step "Make America Great Again". During the election campaign, Trump repeatedly claimed that China is cheating America on trade. The Chinese government has discovered two distinct problems with China that must be resolved immediately. These are as follows-1. China's theft of intellectual property rights that should be stopped and 2. Reduce the growing trade deficit with China. But the trade relationship between the United States and China is not so simple, as several issues regarding security, trade and commerce cannot be intertwined. Currently, the trade balance is in favor of China, at $375 billion as of December 2017. But this huge imbalance does not happen overnight. There are several reasons-1. Since China has cheap labor costs, American manufacturers have moved to China to take advantage of the lower labor costs. Subsequently, the finished products bearing the "Made in China" mark are imported into the United States and then these are sold at lower prices than those made in America. On the other hand, “Made in USA” products are no longer competitive in international markets because they have higher production costs, with the exception of high-tech machinery. 2. As of January 2018, US debt to China was $1.17 trillion. China directly helped U.S. bank interest rates stay low by directly purchasing U.S. bonds. Now the question is whether it is possible for the United States to reduce the trade deficit, which China? Recently a wind of change can be observed across the world. Work-oriented countries are constantly growing. China is the country that has benefited most from the recent change thanks to its trade policies and social values. China's economic growth has some characteristics: its rapid industrialization leads to the production of labor-intensive goods at lower costs and another is that they are exporting them all over the world. Therefore, the trade balance between the United States and China may be achieved partially through negotiations, not completely. But Trump's trade war warning is not a solution, in fact it will be devastating. Sanctions and tariffs on Chinese products will not be a good policy as Chinese trade is not dependent on the US, as the US only accounts for 18.4% of China's exports according to 2016 data. Imposing tariffs on Chinese goods would lead at higher prices for American consumers with lower demand for American products made in China. This could lead to a sharp decline in American businesses. Because of this, both US businesses and China will face job losses. Donald Trump, as a nationalist leader, cannot be blamed for threatening to take measures to restore the trade balance with China. The main problem is; China has not fully opened its economy and the yuan is not fully capital exchangeable. While its standard of living is improving, it is keeping the domestic market protected from goods imported under quotas. Furthermore, thanks to low labor costs, China will continue to be a profitable place for investment?