The game really changed in 1979. That’s when the U.S. and China formally recognized each other diplomatically. President Jimmy Carter and China’s Deng Xiaoping said, “Let’s be friends and make money.” Immediately, trade rules got way easier.
Deng’s economic reforms turned China into a manufacturing powerhouse. Suddenly, you could buy a “Made in China” T-shirt for $5 instead of a domestic one for $20. American companies like Walmart and Apple became obsessed with Chinese factories. By the 1990s, trade was booming like a rock concert.
In 2001, China joined the World Trade Organization (WTO). This was the nuclear launch of trade. American companies could open factories, own businesses, and ship goods tariff-free. Let’s be honest: that’s when your entire living room probably filled up with Chinese-made stuff.
