As the world economy accelerates in the pace of globalization, countries emphasizes more on participating in the international economic cooperation. Since China has joined the WTO, the partnership between China and US has evolved to rapid development stage. As China and US are in different states of economic development, resulting in strengthen the economic structure between the two countries. As US trade deficit increases in China, the various new disputes occur more frequent alone with the intensify trade friction, US is the one initiated the most anti-dumping measures to China in the amount of the members of the World Trade Organization, which may indicate US worry towards the trade deficit with China.
Even both China and US are the members of World Trade Organization, China has comparative advantage over US. Thus, the huge merchandise trade deficit happens, when China carries over low-cost to US market, which extends out of the China-US trade friction. China-US trade friction cover widely to the entire industry, US as the pioneer in using trading protection measures, has already caused a pressure to China. To face this powerful trade partner, China chooses bilateral way to settle the dispute, after concerned with current international situation.
US trade protection measures have great impact in industrial competitiveness to China, which results in losing the accusations on import defense allegations of anti-dumping with US, often encounter against. This paper tries to use the discussion between China and US trade performances, and friction conditions, to find out the original cause of the economy deficit, as well as the approaches they use to handle such situation.