This paper explains the root cause of China＇s trade surplus and argues that it is rooted in structural factors. China＇s dual economic structure and the relatively slow growth in wages due to the abundant supply of l...This paper explains the root cause of China＇s trade surplus and argues that it is rooted in structural factors. China＇s dual economic structure and the relatively slow growth in wages due to the abundant supply of labor have led to a large supply glut between China＇s domestic demand and output, which has been balanced by export. This is a structural problem that cannot be solved by currency appreciation or the readjustment of capital account deficits. A potentially viable option is to adjust the current account by developing a new opening-up system featuring more freedom and compliance.展开更多
The Trump administration's hostile trade actions against China since the beginning of this year violate World Trade Organization rules. To protect the free trade world economic system, China has stood up to fight ...The Trump administration's hostile trade actions against China since the beginning of this year violate World Trade Organization rules. To protect the free trade world economic system, China has stood up to fight this trade bullying. When the US administration continued with harsher actions, the escalation in trade friction increased the potential harm for both countries. China has been very clear that Trump's trade tariffs cannot improve the bilateral trade imbalance. Tit-for-tat ought to be a last resort but China is open to talking. Now the ball is in Trump's court. As two big,influential economies, China and the US should calm down and go back to negotiating table to avoid a trade war trap. Bullying is only one approach President Trump can choose, but arbitrary threats are no solution.展开更多
The Sino-U.S. trade imbalance and the related debate on RMB appreciation have attracted much attention in recent years. Judging objectively, however, the trade imbalance does not necessarily result in an imbalance in ...The Sino-U.S. trade imbalance and the related debate on RMB appreciation have attracted much attention in recent years. Judging objectively, however, the trade imbalance does not necessarily result in an imbalance in the distribution of trade benefits. By analyzing the distribution of benefits in Sino-U.S. trade from 1978 to 2007, this paper finds that bilateral trade has brought positive benefits to both sides, differentially in terms of production and consumption. Simply put, China has gained benefits for production yet suffered in terms of consumption, whereas the opposite is true for the U.S.. Moreover, even during periods in which the U.S. experienced a trade deficit, its citizens gained larger total individual benefits than those in a period of trade surplus. We argue, therefore, that appreciation of the RMB would reduce the trade benefits for both sides by almost the same margin, bringing little benefit to the United States.展开更多
文摘This paper explains the root cause of China＇s trade surplus and argues that it is rooted in structural factors. China＇s dual economic structure and the relatively slow growth in wages due to the abundant supply of labor have led to a large supply glut between China＇s domestic demand and output, which has been balanced by export. This is a structural problem that cannot be solved by currency appreciation or the readjustment of capital account deficits. A potentially viable option is to adjust the current account by developing a new opening-up system featuring more freedom and compliance.
文摘The Trump administration's hostile trade actions against China since the beginning of this year violate World Trade Organization rules. To protect the free trade world economic system, China has stood up to fight this trade bullying. When the US administration continued with harsher actions, the escalation in trade friction increased the potential harm for both countries. China has been very clear that Trump's trade tariffs cannot improve the bilateral trade imbalance. Tit-for-tat ought to be a last resort but China is open to talking. Now the ball is in Trump's court. As two big,influential economies, China and the US should calm down and go back to negotiating table to avoid a trade war trap. Bullying is only one approach President Trump can choose, but arbitrary threats are no solution.
文摘The Sino-U.S. trade imbalance and the related debate on RMB appreciation have attracted much attention in recent years. Judging objectively, however, the trade imbalance does not necessarily result in an imbalance in the distribution of trade benefits. By analyzing the distribution of benefits in Sino-U.S. trade from 1978 to 2007, this paper finds that bilateral trade has brought positive benefits to both sides, differentially in terms of production and consumption. Simply put, China has gained benefits for production yet suffered in terms of consumption, whereas the opposite is true for the U.S.. Moreover, even during periods in which the U.S. experienced a trade deficit, its citizens gained larger total individual benefits than those in a period of trade surplus. We argue, therefore, that appreciation of the RMB would reduce the trade benefits for both sides by almost the same margin, bringing little benefit to the United States.
