The ANATOMY OF US-China Trade Balance

Abstract

China's trade surplus with the United States recorded the highest level ever last year, followed by hard-line trade actions. The Trump administration, which has viewed the persistent trade imbalance with China as a threat to America's economic health, subsequently announced a list of Chinese goods imports to be subject to tariffs as penalty for the alleged unfair trade practices. The Chinese government has threatened to retaliate with its own tariff hikes on American goods. Despite three rounds of bilateral trade negotiation, the two countries have not reached an agreement on how to resolve the trade disputes.