Final answer:
The trade agreement between the US and China has had both positive and negative impacts on the economies of both countries. It has led to increased trade and market expansion for American businesses, while also contributing to a significant trade deficit for the US.
Step-by-step explanation:
The trade agreement between the US and China has had significant impacts on the economies of both countries. One result of the agreement was the increase in trade between the two nations. China became the United States' third largest export market, with exports growing by 294% over the past decade. This has had a positive impact on the US economy, as American businesses have expanded their market reach and increased their profits.
Additionally, the trade agreement has led to the growth of US companies in China. American companies have established joint ventures and wholly owned enterprises in China, creating thousands of jobs for both Chinese and American workers. This has stimulated economic development and contributed to the growth of both countries.
However, the trade agreement has also resulted in a significant trade deficit for the US. The US trade deficit with China exceeded $350 billion in 2006, making it the largest bilateral trade deficit for the US. This deficit has raised concerns about the impact on domestic industries and employment in the US.