Both Sides of the Story
China is often blamed for its trade imbalance with the US. But what’s the other side of the story? Click on a card to find out.
to $367.4 billion.
Statistics used to measure trade flow usually pin the entire trade value of a product to the last place it was exported from, even if its components come from other countries.more>>
The US runs a large trade surplus with China in services. Although small compared to the trade deficit in goods, this surplus is rapidly growing, increasing from an annual average of less than $2 billion from 2000-2008 to $37.4 billion in 2016.more>>
Chinese products lower prices for US consumers by 1-1.5%. The benefits from Chinese trade allowed the average American household to save $850 in 2015, when median household income was $56,500.more>>
The US-China trade imbalance is not deliberately caused by the Chinese. It’s due to divisions in the global value chain and structural differences between the industries in the two countries.more>>
In the past year, if there was any manipulation of the yuan by China, it was to prevent it from devaluing against the US dollar – the opposite of what it would need to do to boost its exports.more>>
Help President Trump Decide
Some quarters in America have urged US President Donald Trump to engage in a trade war with China. Others have counseled him to work with China to reduce the trade imbalance. Which way should President Trump decide?