American Foreign Economic Policy - Oxford Research Encyclopedia of American History
Since , U.S.-China relations have evolved from tense standoffs to a Though Ronald Reagan voices support for stronger ties with Taiwan during his Between and , U.S.-China trade rises from $5 billion to $ billion. The difference in total trade as percentage of G.D.P. between each country and China and each country and the United States. Sources: World. explaining the level of former colonies' trade flows with China. specific trade relation that these countries shared with the hegemon. . graphically the trade flows that are of interest for us, hence former colonies's trade.
Europe plunged into a generation of war. Eschewing involvement, President Washington in issued a Neutrality Proclamation. President Washington dispatched John Jay to London to negotiate.
Jay could not persuade the British to recognize U. Anglo-American trade in the s benefited the U. FromFrench warships targeted American merchant shipping. As anti-French sentiment sharpened, Congress embargoed exports to France, canceled the alliance treaty ofand created the Department of the Navy.
An undeclared naval war with France, often called the Quasi War, ensued. At stake was the claim Adams had made in the Model Treaty of Struggling in its foreign wars, France conceded the point. The Franco-American Convention of ended the alliance ofreaffirmed the commitment to most-favored nation status, and affirmed neutral rights. The Louisiana Purchase nearly doubled U. In time, the Louisiana Territory became a source of federal revenue, often derived from land sales; a magnet for foreign direct investment; a destination for immigrants, free and enslaved alike; an engine of economic power; and a source of conflict with Mexico.
In diverse respects, then, Louisiana ranks among the most consequential acts of economic statecraft not just in U.
American Foreign Economic Policy
Navy to secure the Mediterranean for American merchant vessels. More intractable were the conflicts that resulted from the resumption in of the Anglo-French war for Europe. Once again, Great Britain established a blockade line that made no concessions to neutral rights.
The Royal Navy seized cargoes bound for French territories and impressed thousands of American sailors into British service. Napoleon in late proclaimed his own blockade of the British Isles and declared, in earlythat U.
Jefferson attempted to negotiate, as George Washington had done, but no diplomatic solution was devised. Instead, Jefferson urged Congress in late to pass the first in a series of Embargo Acts prohibiting Americans from engaging in overseas commerce. A dramatic act of renunciation, the embargo policy proved ruinous and divisive. As maritime communities in the northeastern United States atrophied, Jefferson and Congress turned to coercive enforcement.
Congress in early passed the Non-Intercourse Act, which opened trade with all countries except Great Britain and France. The gambit aimed to use trade as a weapon to protect trade, but it served only to exacerbate tensions.
Madison embargoed Britain after Napoleon promised to reopen Europe to trade, opening an escalating Anglo-American dispute over commercial access. Despite winning several victories and burning Washington, Great Britain offered in late to make peace.
Trade propelled growth, but it also embroiled the United States in conflicts that culminated in the War of Thereafter, national economic development began to supplant the pursuit of trading rights as the overarching purpose of national policy. For the remainder of the 19th century and into the 20th century, however, the centerpiece of U.
The intellectual origins of the American System antedated the war of and built upon European mercantilism. The report advocated the cultivation of industries, mainly via the provision of public subsidies. Protectionist ideas fast predominated. Congress in chartered the Second Bank of the United States and raised a tariff that aimed, explicitly, to protect American manufacturers against foreign competition.
Until then, revenue generation had been the rationale for tariffs. Congress raised tariffs in and Under the law, ad valorem tariff rates on some imports reached 62 percent.
While the American System had enjoyed broad support after the War oftariff protection became increasingly contentious as the s progressed, especially in the cotton-exporting South and in trade-oriented New England. The Tariff of lowered rates—but not enough for South Carolina.
Ina state convention voted to nullify the federal tariff. The ensuing Nullification Crisis raised the specter of armed confrontation between the federal government and South Carolina. Congress managed to stave off war with the Compromise Tariff ofbut the episode indicated the emergence of a sectional division over foreign economic policy, a division that turned upon the institution of slavery. From the s to the Civil War, cotton represented about half of all exports from the United States.
Plantation owners built their livelihoods upon cotton exports and imported from Great Britain manufactured goods unavailable at home.
While pro-slavery southerners embraced free trade and espoused territorial expansion into climes suitable for cotton, the industrializing North cleaved to protectionism. For Whigs who followed Henry Clay—a resolutely national figure, despite his southern origins—the protective tariff was sacrosanct. From the beginning of his career in the Illinois legislature, the young Whig Abraham Lincoln was an eloquent and persistent defender of the tariff.
Conversely, slaveholders fretted that settlement of the northwest, including the Oregon Territory acquired inwould curtail their influence. The Compromise of aimed to balance the admission of slave and free states, but pro-slavery zealots advocated further expansion into Mexico and Central America. Some Southerners even launched freelance military expeditions—or filibuster raids—that aimed to turn the Caribbean basin into an empire for slavery.
Far more significant, however, were the economic assets that the United States acquired as a result of violent conquest and dispossession. From the vantage of Mexico and the many indigenous peoples and polities that succumbed to an expanding, ravenous United States, the profoundest explanation for the economic growth of the American republic was neither commerce nor internal development—but war.
That agreement opened five Chinese ports, permitted the United States to set tariffs on bilateral trade, and conferred extraterritorial privileges on American merchants.
China–United States relations
The United States turned next to Japan. In the summer ofCommodore Matthew Perry sailed into Tokyo Bay with a flotilla of steam-powered warships. Perry brought gifts for the emperor, but the threat of armed force helped to conclude the Treaty of Kanagawa in This agreement conferred trade privileges; another agreement in established diplomatic relations and consolidated commercial rights.
Even as Americans opened foreign markets, international inputs contributed to the economic growth of the United States.
The scale of foreign investment fluctuated over time. It was seldom so important as in the s, when foreign funds represented over 15 percent of domestic capital formation. Openness to foreign investment was not a policy decision as such, but the institutional weaknesses of the American financial system curtailed the capacity of the United States to attract foreign direct investment.
Immigration, more than foreign investment, drove the economic growth—and the territorial expansion—of the United States. Immigration to the United States increased markedly during the s and s; over 4.
History of Philippine-American Relations - Oxford Research Encyclopedia of American History
War began in April ; thereafter four additional states, including powerful Virginia, seceded to join the Confederacy. The departure of the South resolved, for a time, antebellum debates over foreign trade and political economy.
The measure raised a tariff that Congress had whittled down in the s. Ad valorem tariffs on dutiable imports rose to nearly 50 percent during the Civil War—and remained high into the 20th century. The Homestead Act granted western lands to prospective family farmers; the Morrill Land-Grant Act gave lands to the states for the purposes of building universities; and Pacific Railroad Acts — made land and funding available for transcontinental railroads, the first of which opened in Navy to intercept merchant vessels on the high seas.
This bold tactic caused a series of conflicts, including the diplomatic crisis that began when the United States seized two Confederate diplomats from a British ship, the Trent, in November That crisis was resolved, but friction over the U. After four years, the South succumbed.
Globalization, Empire, and Backlash, — In the third quarter of the 19th century, the world economy entered a distinctive new era of globalization. Technologies expanded the reach and scope of commerce: While the baton of technological leadership was passing to the United States and Germany, Great Britain retained special responsibilities for international economic governance.
Britain promoted trade liberalization, beginning with the repeal of its Corn Laws, which had restricted and taxed agricultural imports. Britain also championed the gold standard, which fixed the values of major currencies in stable relationship to gold.
Crucially, Great Britain maintained liberal trade policies that permitted foreign exporters access to the British market even as other countries erected protective tariffs. Primacy conferred benefits on Great Britain, but hegemony also entailed costs that rising powers, including the United States, did not have to bear.
The United States from encountered globalization reunified—its union and its borders affirmed in blood. Extra-continental expansion nonetheless continued apace. Convinced that new technologies were transforming the scope of commerce, Secretary of State William Seward strived to project American influence into East Asia. To this end, he negotiated with Russia to purchase Alaska in Seward also worked to negotiate a commercial reciprocity treaty with Hawaii, an agreement concluded in He attempted with less success to acquire territory in the Caribbean and in Nicaragua, where he proposed to construct a Trans-Isthmian canal.
Blaine articulated the anxieties of a rising economic power. Blaine assured Mexico that Americans sought investment opportunities, not territorial control, and he worked to forge a Pan-American customs union that would confirm the commercial ascendancy of the United States in the Americas.
In pursuit of this goal, Congress in passed the McKinley Tariff. The trade law gave the president discretion to use tariffs on imports as a lever to open the markets of countries that exported basic commodities, including coffee, sugar, and molasses, to the United States. Blaine and other expansionists looked outward, but the United States in the late 19th century remained a net beneficiary of inbound international economic flows. The United States remained open to investment, and foreign capital flowed into the U.
Great Britain was the major source of foreign direct investment through this period, and British funds flowed particularly into the western United States, where railroads, mining, and land claims became common venues for investment.
While the federal government made little effort to solicit foreign investment, the adoption of a gold standard in assured foreign investors that the U. Even more dramatic than the inflow of capital was the movement of immigrants into the United States.
Almost eleven million entered between andthe influx peaking in the early s. Immigration on such a scale drove American growth and narrowed transatlantic wage differentials. Imitating California, the U. Congress in passed the Chinese Exclusion Act, a law that prohibited the immigration of Chinese workers to the United States. Congress erected no other blanket exclusions, and controls on immigration otherwise remained loose.
The federal government lacked even the capacity to regulate immigration untilwhen Congress gave that responsibility to the Treasury Department. The backlash against globalization that manifested in anti-immigration politics also yielded a critique of the gold standard. Rallying to the slogan of sound money, Republicans mostly favored the gold standard. Fixing the dollar against gold, proponents argued, kept price inflation low and sustained international monetary stability.
Maintaining a gold standard, these critics argued, kept money scarce and interest rates high, at the cost of subdued wages and throttled growth. Democratic candidate William Jennings Bryan elevated the debate into the realm of searing metaphor when he proclaimed in July: From the early s, the European powers scrambled for Africa, dividing the continent into zones of exclusive control.
The United States appealed to Belgium for open access to the Congo, to little practical avail. Belgium soon turned the Congo into a zone of exclusive colonial control and exploitation. Developments elsewhere prompted more forceful defense of the open access principle. Americans, meanwhile, debated whether their country should claim its place among the colonial powers of the world.
The Burlingame Treaty embodied these principles. Inthe Chinese Educational Mission brought the first of two groups of Chinese boys to study in the United States.
They were led by Yung Wingthe first Chinese man to graduate from an American university. During the California Gold Rush and the construction of the transcontinental railroadlarge numbers of Chinese emigrated to the U.
After being forcibly driven from the mines, most Chinese settled in Chinatowns in cities such as San Franciscotaking up low-end wage labor, such as restaurant and cleaning work.
With the post-Civil War economy in decline by the s, anti-Chinese animosity became politicized by labor leader Denis Kearney and his partyas well as by the California governor John Bigler.
Both blamed Chinese coolies for depressed wage levels. In the first significant restriction on free immigration in U. Those revisions allowed the United States to suspend immigrationand Congress acted quickly to implement the suspension of Chinese immigration and exclude Chinese skilled and unskilled laborers from entering the country for ten years, under penalty of imprisonment and deportation.
The ban was renewed a number of times, lasting for over 60 years. Morgan and Andrew Carnegie, sought to provide the American capital and management that would generate a rapid industrialization of China. It started building the Hankow-Canton Railroad, to link central and southern China. It only managed to finish 30 miles of line. Americans soon grew disillusioned, and sold out to a rival Belgian syndicate. Standard Oil did succeed in selling kerosene to the China market, but few others made a profit.
Boxer Rebellion US troops in China during the Boxer Rebellion in Ina movement of Chinese nationalists calling themselves the Society of Right and Harmonious Fists started a violent revolt in China, referred to by Westerners as the Boxer Rebellionagainst foreign influence in trade, politics, religion, and technology. The campaigns took place from November to September 7,during the final years of Manchu rule in China under the Qing dynasty.
The insurgents attacked foreigners, who were building railroads and violating Feng shuiand Christianswho were held responsible for the foreign domination of China. Diplomats, foreign civilians, soldiers, and Chinese Christians were besieged during the Siege of the International Legations for 55 days. The multinational forces were initially defeated by a Chinese Muslim army at the Battle of Langfangbut the second attempt in the Gaselee Expedition was successful due to internal rivalries among the Chinese forces.
Marines fight rebellious Boxers outside Beijing Legation Quarter Copy of painting by Sergeant John Clymer. The Chinese government was forced to indemnify the victims and make many additional concessions. Subsequent reforms implemented after the rebellion contributed to the end of the Qing dynasty and the establishment of the modern Chinese Republic.
The United States played a secondary but significant role in suppressing the Boxer Rebellion, largely due to the presence of US ships and troops deployed in the Philippines since the American conquest of the Spanish—American and Philippine—American War. The Chinese paid indemnities to each of the powers. A number of schools were established in China, such as Tsinghua College in Peking.
They supported missionaries inmore than inand in By they opened 16 American universities, six medical schools, and four theology schools, together with middle schools and a large number of elementary schools. The number of converts was not large, but the educational influence was dramatic. Punch Aug 23, by J. Pughe In the s the major world powers FranceBritainGermanyJapanand Russia began carving out spheres of influence for themselves in China, which was then under the Qing dynasty.
The United States demanded this practice to end so that all nations could trade on an equal footing. Secretary of State John Hay sent diplomatic letters to these nations, asking them to guarantee the territorial and administrative integrity of China and to not interfere with the free use of treaty ports within their respective spheres of influence.
Hay took this as acceptance of his proposal, which came to be known as the Open Door Policy. Japan also presented a further challenge to the policy with its Twenty-One Demands in made on the then- Republic of China. Japan also made secret treaties with the Allied Powers promising Japan the German territories in China. InJapan invaded and occupied Manchuria.