17 / 2015-09-09 13:02:06

The Empirical Analysis on America and China's Trade Imbalance

: Sino-US trade; GDP; Exchange rate; trade balance; Empirical Analysis

Recently, the trade imbalance between America and China has become a hot spot, which is also a major obstacle to the relationships between the two countries. Therefore, the analysis of imbalance seems very important. In this article, select the Sino-US trade data from 2000 to 2013, China's GDP, America's GDP and the RMB's nominal exchange rate against the dollar (ER) as independent variables, the Current Account Balance between China and America is as the independent variable, after empirical analysis, the following conclusions are made: firstly, the USA’s current account is in deficit condition; secondly, CA is negatively correlated with the RMB exchange rate, Chinese GDP and American GDP. At last, some suggestions are provided.