The US-China trade deficit, explained for Donald Trump - Sara Hsu

Sara Hsu

The trade deficit between China and the US is a little bit more complex than simply comparing import and expert, says financial expert Sara Hsu to the CGTN. It starts with American companies making a profit by manufacturing in China and then exporting it to the US. And then goes on. Reducing the trade deficit might not be straightforward.

Sara Hsu is a financial analyst at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts on the trade war between the US and China? Do check out this list.

Reducing China's trade deficit with US$ 200 billion sounds impossible - Victor Shih

Victor Shih

Rumors - denied by China - say China is willing to offer a reduction of its annual trade deficit with the US by US$200 billion. Even if China would be willing to do so, it would almost be "difficult to contemplate", says political analyst Victor Shih to Bloomberg.

Bloomberg:

The U.S. and China were expected to exchange new trade proposals during the Washington talks, Trump economic adviser Larry Kudlow said earlier Thursday. 

Mnuchin is leading the talks with Liu, along with Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer, according to the White House. 

Victor Shih, a professor at the University of California in San Diego who studies China’s politics and finance, said he finds an agreement to cut the U.S. deficit by $200 billion “difficult to contemplate.” 

“Even with a drastic reallocation of Chinese imports of energy, raw materials and airplanes in favor of the U.S., the bilateral trade deficit may reduce by $100 billion,” he said. “A $200 billion reduction would mean a drastic reduction in Chinese exports to the U.S. and a dramatic restructuring of the supply chain.”

More in Bloomberg.

Victor Shih is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more political experts at the China Speakers Bureau? Do check out this list.  

Trade deficit does not mean China steals your jobs - Arthur Kroeber

US trade deficit via Wikipedia

Economists and China analysts all too easy link the trade deficit between China and the US with the loss of jobs in the USA. Wrong, says economic analyst Arthur Kroeber in the Wall Street Journal.

“By the logic of their argument, any country that runs a trade deficit should experience perpetual loss of jobs and wages, and any country that runs a surplus should experience perpetual gains in jobs and wages,” Arthur Kroeber, head of China research for the economic-research company GaveKal Dragonomics, wrote in an email. “Yet many developing countries run consistent current account deficits (for example South Korea during much of the 1970s and ’80s) and still experience high job and wage growth, while other countries run persistent surpluses yet have stagnant employment and wage growth (e.g. Germany and Japan).”

Commercial
Arthur Kroeber is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.

Arthur Kroeber by Fantake via Flickr

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