Service Programs---New Chances for the US-China’s Economies

Abstract

For years the US and China have cooperated closely on manufacturing programs, which helps China become the world manufacturing center. While both have gained much from the cooperation, there are also increasing frictions, disputes, complains and dissatisfaction with each other because of the huge trade unbalance problem and others significant issues. The US is eager to expand export to China, but China seems hesitate to decide what to import from the US. This paper presents an analysis of the benefits of the US-China cooperation with a primary focus on the service sector which remains a large and untapped opportunity in China. The goal of the paper is to explore a new route to relieve the trade balance issues as they separately impact both nations. While focusing on analyzing several immediate opportunities, the paper also investigates several new ideas that rest on technology as well as entrepreneurial development.