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% of its economy in 2020. The trend strongly reflects the overall dependence of China’s economy on its export trade which further ties Chinese growth to that of its trading partners. Besides, the high export volume also tends to cause main trading partners’ trade deficit. At present, trade imbalance between US and China is a top concern in USChina relation. Statistics provided by the American Chamber of Commerce indicates that between 2020and 2020, the US trade deficit with China increased from $ to $ billion (excluding service trade), accounting for of the US total trade deficit. Asking China to take measures to increase inputs from America and decrease trade surplus to the US has bee a strong argument from American authorities. Strong concerns continue to exist on the part of all trading nations that China’s increasing demand of oil and other energy resources may cause harm to the international economic order. Furthermore, the US worries that China’s huge exports may further erode US job losses, a growing concern throughout American labor markets. It has been estimated that approximately 70%80% of China39。s concentration on economic growth at the expense of a more rational utilization of its resources, further damaging the environment, and not being as mindful of economic efficiency as Chinese planners and manufactures might have been. The World Bank cited 16 Chinese cities out of 20 as the worlds most polluted. In a recent study of carbon dioxide emissions, the most damaging of all greenhouse gases, a Dutch institute (Netherlands Environmental Agency, 2020) concluded that China has surpassed the US and is now the largest CO2 emitter in the world. This listing was based on the overviews on energy use as piled by British Petroleum. Anything China can do to reduce its footprint in this area would be most weled as a member of the world munity, Clusters, well thought out and implemented with an objective towards technological and environmental efficiencies offer one opportunity to do just this. Probable solutions (1) Among the WTO member states, the US has the second largest number of antidumping cases against China which has led to much confusion and debate within Chinese business leaders. China recognizes that America is implementing increased protectionism. But President Obama said, We can39。s products will not be recognized as well, hence, the US has usually taken parable prices of a third country to measure the dumping extent of Chinese enterprises, but China argues that this measure is unfair because the third country’s cost may higher than that in China. So, in order to know Chinese merchandise’ cost structure and solve the antidumping dispute permanently, the US and China need to find a better way to negotiate a more reasonable and workable parative strategy towards evaluating these exchanges. However, the most important and also the first step, we think, is to implement a stronger and more workable system to municate and cooperate. Only when both countries trust each other and consider the problems as faced by our trading partners can trade issues be solved easily. (2) Chinese production has historically been associated with the output of relatively inexpensive goods that traditionally relied on an abundant and low cost labor supply to meet the demands of the market. As Chinese industrial policies developed, and became more capital intensive a significantly higher level of productivity was realized. China rapidly became more diversified in terms of its productive capacity and output choices. The conscious movement towards cluster production has made a more diversified production mix possible as well as a natural outgrowth of modernization. These changes in Chinese production capacity occurred as the visible shift towards a more service based economy became a reality throughout the American economy. This emerging dynamic has created a more diversified demand for imported goods on the part of the American consumer, products which are now almost exclusively produced outside of domestic American production facilities. Chinese products have been warmly received by the American consumer. However, the America market has also bee more diversified with some consumers seeking high quality merchandise while others continue to seek lowpriced merchandise. This change has provided a great opportunity for China as well as the need for its producers to prepare a wider range of products to meet this new demand for imports on the part of the United States. One result of this change is that the more diversified demand for any given product must now recognize the need for different levels of quality reflecting different pricing levels as well, creating a wider choice for the American consumer who will then be able to select their desired merchandise at the price and quality levels most desired. It might at first