Title: Benefits of Trade with China
Headings: U.S. Department of the Treasury
U.S. Department of the Treasury
Press Center
Benefits of Trade with China

Content: Over 50 percent of China's goods exports are part of this global processing supply chain. U.S. industrial production (78 percent of which is manufactured goods) rose by 46 percent between 1994 and 2006. As the U.S. economy becomes increasingly globally integrated, the U.S. manufacturing base remains strong. While the U.S.'s manufacturing share of GDP is declining, America is still the world's number one manufacturer, accounting for more than 20 percent of worldwide manufacturing value-added – that's twice as much as Germany and more than 2.6 times as much as China. The U.S. manufactures more today than ever in its history – seven times as much real output as in 1950, with roughly the same number of workers as in 1950. Global
Increased international trade has raised real incomes, restrained prices, introduced greater product variety, spurred technological advances and innovation, and raised real living standards in the United States. The annual payoff from trade liberalization to date is over $10,000 for an average American family of four. This includes the Tokyo Round, Kennedy Round and Uruguay Round, NAFTA and other U.S. free trade agreements. The removal of remaining global barriers to trade in goods and services could generate an additional $600 billion in annual income for the United States. Most of these gains arise from liberalization of trade in services.