US trade deficit with China on a slender
The latest statistics from the US Department of Commerce, will be well-received by US President Donald Trump, who has railed against the perceived irregular US trade relationship with China. For decades, China has sold a far larger volume of goods to the US than it imported, leading Trump to declare on the presidential campaign trail in 2016, “We can’t continue to allow China to rape our country, and that’s what they’re doing.”
The bilateral deficit, which measures the gap between a country’s exports and imports, fell USD 2.8 billion to USD 35.4 billion in November, a monthly fall of 7.3 per cent. The narrowing is part of an overall slump in bilateral trade between the world’s two largest economies, with the US buying and selling less to China in November, although the decline in imports was much greater.
Economists view trade deficits as the result of an economic reality unlikely to yield to changes in trade policy: Americans buy more than they produce, and imports fill the gap. The strong US economy also encourages Americans to buy more foreign products.
US exports are also adversely affected by the American dollar’s role as the world’s currency. The dollar is usually in high demand because it is used widely in global transactions. That means the dollar is persistently strong, raising prices of US products and putting American companies at a disadvantage in foreign markets.China News Region