UNIT 9: INTERNATIONAL MARKETS

READING 1: TRADE BETWEEN CHINA AND THE US

Activity 1: Discussion
What do you know about the US economy and the Chinese economy?
- The economy of the United States is a highly developed mixed economy. It is the world's
largest economy by nominal GDP and net wealth and the second-largest by purchasing power
parity (PPP). It has the world's fifth-highest per capita GDP (nominal) and the seventh-highest
per capita GDP (PPP) in 2021. The United States has the most technologically powerful and
innovative economy in the world. Its firms are at or near the forefront in technological advances,
especially in artificial intelligence, computers, pharmaceuticals, and medical, aerospace, and
military equipment.The U.S. dollar is the currency most used in international transactions and is
the world's foremost reserve currence. Several countries use it as their official currency and in
others it is the de facto currency. The U.S. is the world's largest importer and the second-largest
exporter.
- The economy of the People's Republic of China is a developing market-oriented economy that
incorporates economic planning through industrial policies and strategic five-year plans.
According to the IMF, on a per capita income basis, China ranked 59th by GDP (nominal) and
73rd by GDP (PPP) in 2020. China's GDP was $15.66 trillion (101.6 trillion yuan) in 2020. The
country has natural resources with an estimated worth of $23 trillion, 90% of which are coal and
rare earth metals.[59] China also has the world's largest total banking sector assets of around
$45.838 trillion (309.41 trillion CNY).

What do you know about trade between the two countries?

U.S. goods and services trade with China totaled an estimated $634.8 billion in 2019. China is
currently the United States’ 3rd largest goods trading partner with $558.1 billion in total (two-
way) goods trade during 2019. Trade in services with China (exports and imports) totaled an
estimated $76.7 billion in 2019. According to the U.S. Department of Commerce, U.S. exports of
goods and services to China supported an estimated 911,000 jobs in 2015.
Activity 2: Useful Vocabulary
Part
of
Word/Phrase Definition and Example
Speec
h
the actions of
a government to help its country's trade or industry 
Protectionism
by taxing goods bought from other countries
 /prə noun
Ex: The committee will discuss the relative merits of free trade 
ˈtek.ʃən.ɪ.zəm/
and protectionism.
Chế độ bảo vệ nền công nghiệp trong nước
a fight, especially during a war
Combat
noun Ex: There was fierce combat between the two sides.
/ˈkɒm.bæt/
Trận chiến
an organization consisting of people in business,
Chamber of who work together
Commerce noun to improve business in their town or local area
 /ˌtʃeɪm.bər əv Ex: The Tourist Board and county chamber of commerce 
ˈkɒm.ɜːs/ officials are backing plans for a new hotel development.
Phòng thương mại
to protect someone or something against attack or criticism;
Defend to speak in favour of someone or something
verb
/dɪˈfend/ Ex: How can we defend our homeland if we don't have an army?
Bảo vệ ai/cái gì khỏi bị hại
a particular situation, event, or fact, especially an example of
Instance something that happens generally
noun
/ˈɪn.stəns/ Ex: There have been several instances of violence at the school.
Ví dụ, trường hợp
the part of existence that is measured in minutes, days, years,
Sustain etc., or this process considered as a whole
verb
 /səˈsteɪn/ Ex: He wants to spend more time with his family.
Chống đỡ, duy trì
Dispute noun an argument or disagreement, especially an official one
 between, for example, workers and employers or
two countries with a common border
 /dɪˈspjuːt/ Ex: They have been unable to settle/resolve the
dispute over working conditions.
Cuộc tranh luận
in connection with something
with respect to Ex: I am writing with respect to your letter of 15 June.
Liên quan đến cái gì đó
to say that someone has done something morally wrong, illegal,
Accuse or unkind
verb 
/əˈkjuːz/ Ex: "It wasn't my fault." "Don't worry, I'm not accusing you."
Buộc tội
to control something or someone to your advantage,
often unfairly or dishonestly
Manipulate
verb Ex: Throughout her career she has
/məˈnɪp.jə.leɪt/
very successfully manipulated the media.
Vận dụng
to push something firmly, often without causing it
Press to move permanently further away from you
verb
/pres/ Ex: He pressed his face against the window.
Nhấn

Article 1
by Xin Zhiming

'The US should focus on improving its overall

economic competitiveness instead of seeking
protectionism to combat its economic slowdown,'
said the latest 2008 White Paper: American
Business in China.
‘And it should not argue for a stronger currency to reduce its trade deficit with China, since
the value of the yuan is not the fundamental cause of the deficit,' said the White Paper,
which was released by the American Chamber of Commerce (AmCham) China, AmCham
Shanghai and AmCham South China Tuesday.

The US economy is currently slowing, while its trade deficit with China remains high,
standing at $163.3 billion last year. The deficit has led to protectionism against Chinese goods
and investment in the US.

The two countries should make 'defending and preserving the openness of the trade
relationship a core commitment ', the White Paper said. ‘Instances of co-operation between
China and US far exceed instances of dispute. '

An open US and an open China will lead to sustained benefits for both US companies and
citizens back home,' said Harley Seyedin, Chairman of AmCham South China.'

from China Daily

Article 2
by Andrea Hopkins

The US trade deficit with China cost 2.3 million American

jobs over six years, the Economic Policy Institute said on
Wednesday.

Even when they found new jobs, workers who had lost jobs
to Chinese competition saw their earnings decrease by an
average of $8,146 each year because the new jobs paid less,
according to the report, funded in part by labor unions.
"(We hope) it will help to focus the debate on trade to where it needs to be right now
with respect to China," said Scott Paul, Executive Director of the Alliance for American
Manufacturing.

US manufacturers, labor unions, and many lawmakers have long accused China of
manipulating its currency to give Chinese companies an unfair advantage in international trade,
and are pressing China to continue to allow the yuan to rise against the US dollar.

China has said the United States should recognize how much its yuan currency has
already risen against the dollar – it is about 20 per cent higher since China revalued its
currency in July 2005.

China has also said the fact that Americans save much less of their incomes than the Chinese do
has increased the trade deficit. Chinese-made goods have been extremely popular in recent years
with US consumers looking for low prices.

from Reuters

Activity 3: (A, page 84, Course Book)

Work in pairs. Read the two articles quickly and choose the best title for each one.
a) US-China trade has cost 2.3 million American jobs - 2
b) US protectionism is not the way forward
c) Stop blaming China for US trade deficit - 1
d) Yuan needs to rise against the US dollar

Activity 4: (B, page 85, Course Book)

Look at the articles again. Decide if the statements are true (T) or False (F).
Article 1
1. The US should concentrate on being more competitive economically. T
2. The US should be protectionist. F 'The US should focus on improving its overall economic
competitiveness instead of seeking protectionism to combat its economic slowdown, ... '
3. The US should argue for a stronger Chinese currency in order to reduce the US’s trade deficit
with China. F ' ... it should not argue for a stronger currency to reduce its trade deficit with
China, since the value of the yuan is not the fundamental cause of the deficit ... '
4. The US and China should focus on the openness of their trading relationship. T
Article 2
5. The US should recognize how much the Chinese currency has already risen against the dollar.
T
6. US labor unions say China has manipulated its currency to give Chinese companies an unfair
advantage in international trade. T
7. The Chinese save less of their income than Americans. F 'China has also said the fact that
Americans save much less of their incomes than the Chinese do has increased the trade deficit.'
8. Americans have recently bought Chinese-made goods at low prices. T

Activity 5: (C, page 85, Course Book)

Find the opposites of these words in the articles.
1. free trade >< protectionism
2. upturn >< slowdown
3. surplus >< deficit
4. dispute >< co-operation
5. decreased >< risen
6. spend >< save

Activity 6: (D, page 85, Course Book)

Complete the sentences with words you found in exercise C.
1. Economists know that protectionism and import taxes promote inefficiency.
2. The study was done in co-operation with local businesses.
3. There has been a slowdown in the tourist trade.
4. The figures show a trade deficit of $4 billion.

Activity 7: Words in Phrases

Go back to the articles on pages84-85. Find prepositions to complete the following phrases
and write them in the blanks.
1. The US should focus on improving its overall economic competitiveness.
2. The US economy is currently slowing, while its trade deficit with China remains high,
standing at $163.3 billion last year.
3. Instances of co-operation between China and US far exceed instances of dispute.
4. An open US and an open China will lead to sustained benefits for both US companies and
citizens back home.
5. The US trade deficit with China cost 2.3 million American jobs over six years.
6. Workers who had lost jobs to Chinese competition saw their earnings decrease by an average
of $8,146 each year.
7. It will help to focus the debate on trade to where it needs to be right now with respect to
China.

Activity 8: Pronoun Reference

What does the underlined pronoun refer to?
1. ‘And it should not argue for a stronger currency …’ (article 1, line 11)
The US.
2. ‘Even when they found new jobs, …’ (article 2, line 5)
American workers.
3. ‘…. have long accused China of manipulating its currency…’(article 2, line18)
US manufacturers, labor unions, and many lawmakers.

Activity 9: Word Form

Complete the following sentences with the correct form of the word.
1. compete
Graduates have to fight for jobs in a highlyc competitive market.
Pete likes professions involving a higher degree of competition such as marketing and business
administration.
We are in competition with four other companies for the contract.
2. release
She burst into tears, releasing all her pent-up emotions.
Police have released no further details about the accident.
3. remain
The remaining twenty patients were transferred to another hospital.
Most of our employees work in New York; the remaining are in London.
Divide 2 into 7, and the answer is 3, remainder 1.
4. protect
The government is ready to introduce protectionism for the car industry.
Workers should wear full protective clothing.
In economics, protectionism is the economic policy of restraining trade between countries
through methods such as tariffs on imported goods, restrictive quotas, and a variety of other
government regulations designed to allow fair competition between imports and goods and
services produced domestically. 
5. sustain
The country has achieved sustained economic growth for past decade.
Technologies that promote sustainable energy include renewable energy sources, such
as hydroelectricity, solar energy, wind energy, wave power, geothermal energy, bioenergy, tidal
power and also technologies designed to improve energy efficiency.
6. accuse
The government was accused of incompetence.
The accused was found innocent.
He demanded the right to face his accuser at a public hearing.
7. consume
The electricity industry has consumed large amounts of fossil fuels.
In economics, consumer goods are any tangible commodities produced and subsequently
purchased for consuming. in satisfaction of human wants and are not utilized in any further
production. Consumer goods are divided into three categories: durable goods, nondurable goods,
and services.

Activity 10: Focusing on Words

Fill in each blank in the sentences below with one suitable word. When you finish, turn
back to pages 84 and check your answers.
The latest 2008 White Paper: American Business in China said that the US should focus on
improving its overall economic (1) competitiveness instead of seeking protectionism to combat
its economic (2) slowdown and that it should not argue for a stronger (3) currency to reduce its
trade deficit with China, since the value of the (4) yuan is not the fundamental cause of the
deficit. Its trade deficit with China remains (5) high standing at $163.3 billion last year. The
deficit has (6) led to protectionism against Chinese goods and investment in the US. The two
countries should make defending and preserving the (7) openness of the trade relationship a core
commitment.

Activity 11: (E, page 85, Course Book)

Discussion
What do you think will happen to the trade situation between China and the US?
I think the trade war between China and the US should be addressed in the future. Because the
ongoing trade war is costly and affects the economies of both countries. There are options to
deescalate and to push China to take on greater responsibility (i.e., liberalize more) in the
international trading system.