c situations of US and China’ GDP

There are basic situations and changes in the GDPs of China and the United States from 2008 to 2016. All related graphs can be found in the Appendix. The US’s GDP grew from 14.719 trillion to 18.624 trillion from 2008 to 2016. During this period, except for the decline of the GDP during the 2008-2009 financial crisis, the GPD rose every year. However, the GDP growth rate is not stable. In the composition of US GDP, the largest proportion is tertiary industry, with the largest share of the financial industry and the real estate industry. China’s GDP has been in a state of growth. Manufacturing contributes a lot to the GDP and the developed manufacturing industry increased its exports. These are mainly attributed to the cheap labour, however, the cheap labour reflects the large gap between the rich and poor, which cannot be derived from the GDP. In recent years, China’s GDP growth rate has declined and it decreased from 9.654% to 6.683% between 2008 and 2016 (World Bank). However, it still has the world’s largest growth rate. The rapid growth of the GDP ignores the consumption of resources and the environmental pollution caused by economic development. In addition, while China’s GDP is the second largest in the world, the per capita GDP is only about one-seventh that of the United States.

US’s policy and its impact on the economy

The US’s GDP has always being the best in the world. The data shows that from 1980 to 2015, the US accounted for an average of 27.68% of the world’s GDP (the Global economy.com,2016). The United States is one of the world’s largest trading nations, in 2017, the US was the world’s leading importer. After Trump took office, his economic nationalism has moved US trade away from globalization. way from globalisation. The United States recently launched an attack on the WTO and wants to circumvent the WTO dispute settlement mechanism. This is not the first time that Trump has demonstrated protectionism. US trade policy has changed significantly, affecting the US and other countries. There has been no major progress in the three countries’ negotiations on North American Free Trade Agreement (NAFTA). The main controversy is Mexico and Canada’s objections to the US’s proposal that NAFTA needs to include a sunset clause. They also object to the requirement for enjoying the tax free Free Trade Zone that more than 50% of car parts are produced in the US, and 85% are from the three countries. Trump even threatened to terminate NAFTA. The US’s objective is to reduce their trade deficit and the loss of manufacturing jobs. There are some possible risks. First, if the agreement is passed, the international competitiveness of the US auto industry will decline, and the cost of production will increase. Second, if NAFTA is terminated, then the production and employment of the three countries will be