ABSTRACT
To be the largest developing and developed countries within the world, PRC and USA are highly complementary and mutually beneficial in trade and economic cooperation. The impact of American direct investment in China on Sino-U.S. trade is studied in this article. The United States has become China’s most important foreign investment country and trade partner, and made a very important contribution to China’s economic development. Twenty seven years of relevant annual data from 1992 to 2018 is selected for the study. The study about the proportions of China’s relative imports to America, China’s relative exports to America, American direct investment in China and empirical testing and analysis of the relationship among the three variables found that there is a long-term equilibrium co-integration relationship. It is hoped that suggestions and countermeasures will be made to work out the problems of Sino-US trade imbalance and increasing Sino-US trade frictions.
