The Real Cause for US Trade Deficit Lies in US Position in Globalised Economy

HE Weiwen( 何伟文 )
Director of International Business Exchange Centre at China International Business, Executive Director of China Institute forWTO Studies, Director of China-U.S. Economic Institute, Former Commercial Counsellor of Chinese Consulate General inSan Francisco and New York

Editorial note:

The China-U.S. trade surplus has, over recent years, becomean issue of common concern amongst academic and political circles of both countries.In analysing such an issue, however, people tend to discuss trade imbalance simplyfor the sake of it, without actually making an in-depth analysis of the causes of suchimbalance and its implications on Sino-U.S. economic relations. This paper attemptsto refute some of the prevailing viewpoints through the provision of factual data, andsingles out the politicisation of the trade issue as the primary cause.

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