The main task of this thesis is to investigate economic implications of U.S.- China trade. The study period covers from 1972 to 1992. Data are available from International Financial Statistics, Survey of Current Business, Statistical Yearbook of P.R.China. Various hypotheses are employed to explain the basis and gain of trade, the impact of trade on both economies, and the major determinants of bilateral trade flows. This thesis contains five parts: I. Introduction; II. Outlook; III. Theoretical Analysis; IV. Empirical Study; and V. Conclusion. The major findings of this thesis are that both countries have gained advantages from trade and have also faced some unpleasant problems; several widely recognized theories serve as good approaches to understand these issues; the time series distributed lag models are helpful in explaining the determinants of trade flows.

The purpose of this study is fourfold: to show why and how Communism is emerging in China; to explain the special characteristics of the Chinese Communists and their tactics; to indicate the effect of Communism on the people of China; and to attempt an analysis of the attitude the Chinese Communists manifest toward the United States and Russia. Special emphasis will be laid upon the conflict between the Kuomintang (Nationalists) led by Chiang K'aishek and the Communists led by Mao Tze-Tung.