China's trade with Ethiopia, currently at $5.4 billion per year, is expected to rise to $6 billion by 2018. This essay argues that while trade ties are an important channel of relations Bilateral relations, China has initiated with the outside world and especially with Ethiopia is uneven and lopsided. This is also true for the Ethiopian context, particularly when we look at the two countries' economic capacity, trade balance and relationships with international trade regimes. While China has been a full member of the WTO for over a decade, Ethiopia has aspired to become a member for some time now and thus one of the important aspects of Ethiopia-China trade relations is the strong dependence on bilateral relations/international trade regimes . Therefore, this essay aims to reveal the dynamics in Sino-Ethiopian trade relations with emphasis on the economic capacity of the two countries, trade balance and explore whether Ethiopia's attempts to join the WTO would lead to a more predictable trade relationship between the two. Villages. In this essay I will rely largely on the analysis of relevant archival resources and literature directly related to the topics covered in this article. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original EssayIt is not known exactly when China and Ethiopia first established direct or indirect contact in ancient times. The first contact between Ethiopia and China may have begun around 1000 AD when China began importing rhino horn from Ethiopia during the Axum Dynasty. However, bilateral trade relations between China and Ethiopia were started in 1956 with a limited volume, but after 2005-2006, China became Ethiopia's largest trading partner and began to occupy the first and at least the second place among Ethiopia's trading partners as an import and export origin. Following the change of political leadership of the Ethiopian People's Revolutionary Democratic Front in 1991, the economic policy scene in Ethiopia underwent fundamental changes. Furthermore, the change in trade policy, in turn, created the favorable ground for nations around the world to see Ethiopia as an important trading partner. As a result, Ethiopia is developing bilateral trade relations with the People's Republic of China as a major one. Ethiopia currently has excellent relations with China. Recently, China has entered the foreign investment sector and Ethiopia must do everything possible to seize this new opportunity to promote investment and trade in the country. However, some scholars see China's economic growth as a model of positive development for the third world, while others look more critically at China's behavior on the continent and see its parallels with the neocolonial past. Furthermore, the government of Ethiopia currently views Ethiopia-China relations as contributing to the realization of the country's development. A cursory look at the way political and economic relations between China and Ethiopia have accelerated over the past two decades gives the impression that the momentum will only continue. Today, many argue that this is due to the ideological/political compatibility between the governments in office which, for both national and international reasons, has overshadowed the various economic opportunities and challenges that the relations have brought about. At the national level, the enormous economic development that China has been able to achieve in a short period,bringing it to the level of second economic power, it has lent itself to becoming a model country for other African countries, in particular Ethiopia. And externally, China's Five Principles of Peaceful Coexistence or Panchsheel1 have come as a blessing in disguise for Ethiopia to realize its political and economic aspirations unhindered by those of its Western partners who have long been raking out issues that are considered harmful to its political and economic interests. However, the main argument of this paper is that challenges to bilateral trade relations have been enacted in terms of the two countries' actual economic capabilities, trade balance and inter-country relations. with international trade regimes. This is evident when comparing trade as an element of economic relations in African countries with China, which is already a member of the World Trade Organization (WTO). On the other hand, Ethiopia is only an aspirant for WTO membership and therefore supports non-reciprocal trade relations, thus exploiting bilateral agreements and understandings rather than subscribing to international-level trade rules and regimes. This failure to adhere to trade rules and regimes has contributed to the current imbalance in trade between the two countries. This article is an attempt to highlight the cons and pros of China-Ethiopia bilateral trade ties with reference to the economic capacity of the two countries, trade balance challenges and applicable trade regimes/rules and regulations which not only could potentially have implications broader about relationships but also help explain the nature of relationships. By focusing on the dynamic nature of trade relations between Ethiopia and China, this study aims to contribute to the debate on the extent to which ongoing trade relations will be sufficiently predictable for the mutual benefits of the two countries, in the broader context of China-Africa relations. It was noted that the common interests of African countries, good relations with China are "constantly" expanding, and the future of their economic and trade cooperation is bright. China-Africa economic exchanges will continue to expand within bilateral or multilateral frameworks, broadening the scope of cooperation and exploring new methods of cooperation. The existence of a favorable framework across Africa means that China-Ethiopia trade has been widely perceived as a showcase of such relations. with African countries. This is also important because the ever-growing trade relations between the two countries and Ethiopia appear to enjoy preferential trade relations. However, as noted above, trade relations face challenges in terms of existing differences in the trading capacity that Ethiopia, in particular, has to offer to contribute to a trade imbalance, thus challenging issues of predictability and transparency. The growing trade relationship of China's current and potential impact on Ethiopia is far-reaching and complex. However, such a two-way relationship can only be fruitful if both parties respect each other and are ready to listen and learn from each other's experiences. The relationship must also be supported by an understanding of how one's actions can affect the other's life. Furthermore, it is important to achieve greater export diversification by identifying niche markets for Ethiopian manufactured products in China. Furthermore, China should prioritize Ethiopia's development challenges, such as trade imbalances and other problems, through strengthening local industries and sharing experiences through the transformation of skills, knowledge and.