Page 16 - SCBJ-201609
P. 16
Trade THE US TRADE
facts DEFICIT WITH CHINASouth China Business Journal
HIGHLIGHT According to polling by the Pew Research Center, more than half C
of Americans are concerned about the US trade deficit with China. O
T { F | THE { TfraacdtesradAefew faacctstofsfer important context — and suggest a course of action.
We have a large bilateral trade deficit with China and it is {2/3East Asia held
2015 Polls tell us that many Am
US TRADE DEFICITmuch bigger than it was 20 years ago, before China joined US government debt hel
Rest of China’s daesbiat oww/noecrhs
the WTO. But, everything related to the U.S. economy is East Asia
WITH CHINAbigger than it was 20 years ago. Our economy is more than 17%
twice as big now as it was then.
Much of what we import from China is stuff we imported CfiCatmyItoefelhormrudsanmiocAornosh,seasmi.iEAsdtfm’o,sreeamsf$otdrrpdhso1hoyaltiemeleattcuri9eeiTrnffhbaafcsrAitaitpahdttcedtceirodhasrtrsehiifedys2ieontitelaooatelhbbt0sadcinhlrnUatlodetgaseecesnriarSamod:nffssinotagiecorzyissriseotc.oeourCuosfetfrhmMdoeieinuiatacgoasrorchrric’nshfeesthio,rsitfsmn.c2nohtaCaor0cyiraltn1ohs,hoedko6vinifnsieua,.eonftawrATrtiascscawromdto.ipoeshhtotTeef/iersehia
for decades from other East Asian economies — Japan, 1996
ASouth
KwoitrCheCaEO, aTRsatDiAwINsainGa, (aiTnnOcdluHPdoOinnLggLCKINhoniGnga. )bInwy a1s99tw6,oo-tuhrirtdrasde
deficit
of our totathl etrPadewe dReefisceita;ricthwCaesnatbeor,umt tohreesame in 2015, Rest of 32% 44% asia w/o china
the world 24% china
althotuhgahn lahraglefr oinf toAtmalevraiclaune.s are con- rest of world
33%
As thceersnizeedofabthoeuAt mtheericUaSn etcroandoemdyedfiocuitbled over the
pparosdtwu2c0iethryseCaehrvsien,rAay.wmAheerfericewa. nOfsauchrtastvooetfafpelurtrricamhdapesodered-fimciotrwe afrsoambout 2 China
percetannt tofcoGnDtePxitn—19a9n6d; isnug2g0e1s5t iat wcoausrasbeout 4 percent —
50%
not loafrgaec,tiboyni.nternational or historical standards.
WWahCwdTpserahhhhocviaiirpennleeerbConwkaeaeriht’ghlyasstoahigienoocftopeedheulatnroed.hsraaljhtaeootEdhtltainoiseoaTonrokdlfHnneiyVectadatAhiiothhbtitteVhfnteoewhtwEeoluhUyedituatstreoA.hsraWbSauddm.yddC2orlTaa0eehueoelOtrficibt.adginyvo.hcleW,eeaieniBentfatdoibrahhurgcwmnisetaidEl,trdaityuattaotewgrheirhosvtiaoritimasenaEit,drssAhlg.eybabmcsttTesittdhrhgifhthuhaaoegianeidcAnefresnhigeerrsclgeteiaiiectasmbodtwehneoliiao,stfpsmAwoewhbttrcfsuihhihiooEtnioeithaaebnlucsaetarohErrwsehmtbeaadthmosaalseieyAretssifalnissesdcihcdihinrtaa,aersaesdheeedcl,rdeWothbaoresyeasweopldstot.ehhhrnoekyduree.Elrdcsao.stntTaoAkhmseeiaysgneirsvoewartashilgsontfmCWetthpohheissnaestahttoto.orwuWuagteldehdothefetnoapsiWTdTtadnhakuveeChhecehrevtoefheeleiipotsumsicdnrreUnledaibmievgtetatosdiSeuohascsnpaieciryrnnathoaboggnCresleetsoooendtshasdaleuntvitaoattmheisbeitedstnplmmsneilrp,eseooaeaenswtss,sfneynieimitaeetdsoomnootihpnsfusieuefcagihredsTrnopareolon.miltrtomwnuytAettplegihaddhibptasehsueorysuroueosrmtrgdyfyootiawsbvrntseieoiolortsl-trsnst.eyh,msdni?nereoobdAntttsetesw-sosbifianawdUncesikdt
sayst“hmanadite winasC2h0inyae”artsodaagyo;. 2O0uryeeacrosnoamgoy it probably said trade relationship with Cthaikneai.nWterhneanotiwoCnnhaeildlnya-baycchcAeepmatteesdr,,iwcruaelnes-– local and state gove
“madise minoJreapthaann.”tTwhicee laasstbitgimneowthaes Uitnwitaesd StatTeshiwnkasofathe TV in ysohuor ulilvdintgarkoeomin.tTehrne ationalblya-saedccaecptitoendisn, asrgtuialtieunsst-tibotanhseaemldi.naRvcaettihsotenorsrtshalinke banks and mut
mnoatjorterhpeTlnaV.cimnagnUu.fSa.ctpurroedruwctaiosni.nMthaeny19im60pso,rstos tfhroloamsbeeClTphVriosnbaaarbely says “asmhgoaaudineldsitnbtCohhoesimntaA.”Rmtoa-etrhicearntheaxbnpuobirludtsipldtrooptCercohabttiiyneoncndaftio—isrontenwtdihigiasvenltlisfdwg,auowsaavtelelsssrih,ntnowvmuelesdntotrssa. nTdheinrveemstaoirnsi.nCghdi
share a similar story. day; 20 years ago it gprobwaibnlgy smaiadr“kmeatdine the wobroldos—t Abmy epruilcraasrnugieenxspgtofprotorsleitciogieCnshditnehaba—tt thhoelder with $1.2 trillio
TtCtrdAhhheeahmhcaefbeiietenciostUCMEosKriwanssttiuhaouic.luerbwosSairyfacntefnets.dhniartaAwct,hoaht)s,haoslednhaTiwiifmsnaek’eiCsawtpamngieedshaeewhmspeecnitiaaafctonwnotaittnorcrhmnakowan,ti2late-oeeadoae0dtdtwmsnhmej0rhisodrifmio9ytero.iderhepdH.rpAdersmpseBEodfoeum—i,eoreancacectdafcsoeigtenJftatovwrsrbtaKuduAioebrpyecetformreseaaahesnientmcnacnnoefgdaCdtr,t(s.ououhU2aSiaIrtnmlrisro0nnhen.ceteeuS0rlada1sortuta8.9wthuh.iddit9shInamabeire6ennnnaer,b2eggddfud0$aae1y42cntd000tha,el,0ebooflt9iiniohrnci1psw,ltngl9hieerboaitoo6aoJubusooirdf0naersvyfaeupssfeia,taamctoanrrustsnrsgiaaaoeof.ijl”dmfntolhTer.iolhMTaserVealsnaTmtysoVtarisnmytaahhncuria.umoenpeeosrfsmdeeolmwadetpuscrrnpttetacohjowstueoegneottrtfbororegritUksrioterhcbikenempiwvueocneeiletalaooprCtetncsmsnrsudhiotaeinorianoSusdngmwefrtstatefaUeohpeyttAare.cer.ovSknmtsoAi.eebeddnednrrurmdasecbiun,ctdyasariturt.ecntauppfikcahuWmnnurstaesmroaehddrttteaesdsneiauadmyuoasutsgtsnotnicgchabentgAuctorkrrsoegsaeokfiome.uansetpdetewWoslscitedospdmi.t,TtaaioWrlanebtiuomthsiwchctghmearscuenrcaihaehpaarernamteeatknaovrsoiosotdAeUtcnieaitsuurtcidewmoarrhiogtl.ebdnsrkdnnSemaanesobeatsoevttg,t.noertry.etositaiait,rredptnTacssiuhkienJlancteassiukydehndaaooatrn,nt,ueehsinttlsphspadslosmcwtetoeaigeiCeoehnonsriitmrrpeanlwsmhfaetoivi,lnsach.ctcyyoitaiauuaphbnheiohcCrnedfltafroeealnattahiisddourrussnvbctii—eav,irnsti-tedomndenoesaabtuegutueyhteeateo7nttshotapfhaosmeterpreaeAocnfvaemfdeenmrectmaotrsouiloclfntradhettneoeosebtf?Uat
trreaddueadcleedtfhietcohfiiutec;giithttrclwaardaragseweadrlbeeiondfuicttboitattha,celtkvhsaauelmypu.eea.Wirneh2ni0loe1t5r,geocoedssfioornosuTbmruhiyeegcaUholt.noSto. mhofaysstauftfrathdaeTCtdwhheeefiinscdeaiot,nabb’cetutcmiatouaanskrseeewahareeerleon,tomt aosreethlarioaskmiyneelianytsgot,pobaoonmiodnissanottikimmwanepgoevarrtaotkhhdvreiieirenefecfgtfeodiynrtmuheogcpnfaaeetctrwiteoiwaat.nityevaseann, sdefesaswntooaftitohnemmupsotsiatdivderley
Sources: U.S. Department of Commerce, Pew Foundation, InternaattiorneanldMtohnaettabreygFaunndlong before China be- ensu©reMtahya2t0AI1t6mUaeSlrs-iCochamincaoenBatunisnsinuteehsssatCtoouChnahcviilenaa has a significant
econotinmhveye.esActonondr,,oiCmt hmiciansyaubcwecateisnmstesotfiottshaesUsentistetod States.
As the size of the American economy came a major manufacturer. In fact, one strong gain or
doubled over the past 20 years, Ameri- of the only things that reduces the U.S. revisit policies to help workers affected
cans have purchased more from produc- trade deficit is a recession, like in 2009. by changes tSooutrhcees:UD.eSp.aertcmoennot mof ythfeinTrdeanseurwy, CRS Report for Congr
ers everywhere. Our total trade deficit was Between 2008 and 2009, our trade jobs in more vibrant industries.
about 2 percent of GDP in 1996; in 2015 deficit with China dropped by more than
it was about 4 percent — not large, by $40 billion as Americans spent less. These actions are not as easy as pointing
international or historical standards. Americans resumed their buying habits the finger at China, but are a lot more
as the economy recovered and in 2010, likely to make a difference.
When you look at the data, the trade defi- the overall trade deficit crawled back up.
cit with East Asia as a whole and the trade While recessions might reduce the trade
deficit with the rest of the world have deficit, they are not good for our economy
each also about doubled during this time, or workers. The growth of the trade defi- This article was first published by US-China Business
but remain proportionately the same. cit in times of a healthy economy is a sign Council.
What has changed is that China’s portion that we have disposable income to spend.
14
facts DEFICIT WITH CHINASouth China Business Journal
HIGHLIGHT According to polling by the Pew Research Center, more than half C
of Americans are concerned about the US trade deficit with China. O
T { F | THE { TfraacdtesradAefew faacctstofsfer important context — and suggest a course of action.
We have a large bilateral trade deficit with China and it is {2/3East Asia held
2015 Polls tell us that many Am
US TRADE DEFICITmuch bigger than it was 20 years ago, before China joined US government debt hel
Rest of China’s daesbiat oww/noecrhs
the WTO. But, everything related to the U.S. economy is East Asia
WITH CHINAbigger than it was 20 years ago. Our economy is more than 17%
twice as big now as it was then.
Much of what we import from China is stuff we imported CfiCatmyItoefelhormrudsanmiocAornosh,seasmi.iEAsdtfm’o,sreeamsf$otdrrpdhso1hoyaltiemeleattcuri9eeiTrnffhbaafcsrAitaitpahdttcedtceirodhasrtrsehiifedys2ieontitelaooatelhbbt0sadcinhlrnUatlodetgaseecesnriarSamod:nffssinotagiecorzyissriseotc.oeourCuosfetfrhmMdoeieinuiatacgoasrorchrric’nshfeesthio,rsitfsmn.c2nohtaCaor0cyiraltn1ohs,hoedko6vinifnsieua,.eonftawrATrtiascscawromdto.ipoeshhtotTeef/iersehia
for decades from other East Asian economies — Japan, 1996
ASouth
KwoitrCheCaEO, aTRsatDiAwINsainGa, (aiTnnOcdluHPdoOinnLggLCKINhoniGnga. )bInwy a1s99tw6,oo-tuhrirtdrasde
deficit
of our totathl etrPadewe dReefisceita;ricthwCaesnatbeor,umt tohreesame in 2015, Rest of 32% 44% asia w/o china
the world 24% china
althotuhgahn lahraglefr oinf toAtmalevraiclaune.s are con- rest of world
33%
As thceersnizeedofabthoeuAt mtheericUaSn etcroandoemdyedfiocuitbled over the
pparosdtwu2c0iethryseCaehrvsien,rAay.wmAheerfericewa. nOfsauchrtastvooetfafpelurtrricamhdapesodered-fimciotrwe afrsoambout 2 China
percetannt tofcoGnDtePxitn—19a9n6d; isnug2g0e1s5t iat wcoausrasbeout 4 percent —
50%
not loafrgaec,tiboyni.nternational or historical standards.
WWahCwdTpserahhhhocviaiirpennleeerbConwkaeaeriht’ghlyasstoahigienoocftopeedheulatnroed.hsraaljhtaeootEdhtltainoiseoaTonrokdlfHnneiyVectadatAhiiothhbtitteVhfnteoewhtwEeoluhUyedituatstreoA.hsraWbSauddm.yddC2orlTaa0eehueoelOtrficibt.adginyvo.hcleW,eeaieniBentfatdoibrahhurgcwmnisetaidEl,trdaityuattaotewgrheirhosvtiaoritimasenaEit,drssAhlg.eybabmcsttTesittdhrhgifhthuhaaoegianeidcAnefresnhigeerrsclgeteiaiiectasmbodtwehneoliiao,stfpsmAwoewhbttrcfsuihhihiooEtnioeithaaebnlucsaetarohErrwsehmtbeaadthmosaalseieyAretssifalnissesdcihcdihinrtaa,aersaesdheeedcl,rdeWothbaoresyeasweopldstot.ehhhrnoekyduree.Elrdcsao.stntTaoAkhmseeiaysgneirsvoewartashilgsontfmCWetthpohheissnaestahttoto.orwuWuagteldehdothefetnoapsiWTdTtadnhakuveeChhecehrevtoefheeleiipotsumsicdnrreUnledaibmievgtetatosdiSeuohascsnpaieciryrnnathoaboggnCresleetsoooendtshasdaleuntvitaoattmheisbeitedstnplmmsneilrp,eseooaeaenswtss,sfneynieimitaeetdsoomnootihpnsfusieuefcagihredsTrnopareolon.miltrtomwnuytAettplegihaddhibptasehsueorysuroueosrmtrgdyfyootiawsbvrntseieoiolortsl-trsnst.eyh,msdni?nereoobdAntttsetesw-sosbifianawdUncesikdt
sayst“hmanadite winasC2h0inyae”artsodaagyo;. 2O0uryeeacrosnoamgoy it probably said trade relationship with Cthaikneai.nWterhneanotiwoCnnhaeildlnya-baycchcAeepmatteesdr,,iwcruaelnes-– local and state gove
“madise minoJreapthaann.”tTwhicee laasstbitgimneowthaes Uitnwitaesd StatTeshiwnkasofathe TV in ysohuor ulilvdintgarkoeomin.tTehrne ationalblya-saedccaecptitoendisn, asrgtuialtieunsst-tibotanhseaemldi.naRvcaettihsotenorsrtshalinke banks and mut
mnoatjorterhpeTlnaV.cimnagnUu.fSa.ctpurroedruwctaiosni.nMthaeny19im60pso,rstos tfhroloamsbeeClTphVriosnbaaarbely says “asmhgoaaudineldsitnbtCohhoesimntaA.”Rmtoa-etrhicearntheaxbnpuobirludtsipldtrooptCercohabttiiyneoncndaftio—isrontenwtdihigiasvenltlisfdwg,auowsaavtelelsssrih,ntnowvmuelesdntotrssa. nTdheinrveemstaoirnsi.nCghdi
share a similar story. day; 20 years ago it gprobwaibnlgy smaiadr“kmeatdine the wobroldos—t Abmy epruilcraasrnugieenxspgtofprotorsleitciogieCnshditnehaba—tt thhoelder with $1.2 trillio
TtCtrdAhhheeahmhcaefbeiietenciostUCMEosKriwanssttiuhaouic.luerbwosSairyfacntefnets.dhniartaAwct,hoaht)s,haoslednhaTiwiifmsnaek’eiCsawtpamngieedshaeewhmspeecnitiaaafctonwnotaittnorcrhmnakowan,ti2late-oeeadoae0dtdtwmsnhmej0rhisodrifmio9ytero.iderhepdH.rpAdersmpseBEodfoeum—i,eoreancacectdafcsoeigtenJftatovwrsrbtaKuduAioebrpyecetformreseaaahesnientmcnacnnoefgdaCdtr,t(s.ououhU2aSiaIrtnmlrisro0nnhen.ceteeuS0rlada1sortuta8.9wthuh.iddit9shInamabeire6ennnnaer,b2eggddfud0$aae1y42cntd000tha,el,0ebooflt9iiniohrnci1psw,ltngl9hieerboaitoo6aoJubusooirdf0naersvyfaeupssfeia,taamctoanrrustsnrsgiaaaoeof.ijl”dmfntolhTer.iolhMTaserVealsnaTmtysoVtarisnmytaahhncuria.umoenpeeosrfsmdeeolmwadetpuscrrnpttetacohjowstueoegneottrtfbororegritUksrioterhcbikenempiwvueocneeiletalaooprCtetncsmsnrsudhiotaeinorianoSusdngmwefrtstatefaUeohpeyttAare.cer.ovSknmtsoAi.eebeddnednrrurmdasecbiun,ctdyasariturt.ecntauppfikcahuWmnnurstaesmroaehddrttteaesdsneiauadmyuoasutsgtsnotnicgchabentgAuctorkrrsoegsaeokfiome.uansetpdetewWoslscitedospdmi.t,TtaaioWrlanebtiuomthsiwchctghmearscuenrcaihaehpaarernamteeatknaovrsoiosotdAeUtcnieaitsuurtcidewmoarrhiogtl.ebdnsrkdnnSemaanesobeatsoevttg,t.noertry.etositaiait,rredptnTacssiuhkienJlancteassiukydehndaaooatrn,nt,ueehsinttlsphspadslosmcwtetoeaigeiCeoehnonsriitmrrpeanlwsmhfaetoivi,lnsach.ctcyyoitaiauuaphbnheiohcCrnedfltafroeealnattahiisddourrussnvbctii—eav,irnsti-tedomndenoesaabtuegutueyhteeateo7nttshotapfhaosmeterpreaeAocnfvaemfdeenmrectmaotrsouiloclfntradhettneoeosebtf?Uat
trreaddueadcleedtfhietcohfiiutec;giithttrclwaardaragseweadrlbeeiondfuicttboitattha,celtkvhsaauelmypu.eea.Wirneh2ni0loe1t5r,geocoedssfioornosuTbmruhiyeegcaUholt.noSto. mhofaysstauftfrathdaeTCtdwhheeefiinscdeaiot,nabb’cetutcmiatouaanskrseeewahareeerleon,tomt aosreethlarioaskmiyneelianytsgot,pobaoonmiodnissanottikimmwanepgoevarrtaotkhhdvreiieirenefecfgtfeodiynrtmuheogcpnfaaeetctrwiteoiwaat.nityevaseann, sdefesaswntooaftitohnemmupsotsiatdivderley
Sources: U.S. Department of Commerce, Pew Foundation, InternaattiorneanldMtohnaettabreygFaunndlong before China be- ensu©reMtahya2t0AI1t6mUaeSlrs-iCochamincaoenBatunisnsinuteehsssatCtoouChnahcviilenaa has a significant
econotinmhveye.esActonondr,,oiCmt hmiciansyaubcwecateisnmstesotfiottshaesUsentistetod States.
As the size of the American economy came a major manufacturer. In fact, one strong gain or
doubled over the past 20 years, Ameri- of the only things that reduces the U.S. revisit policies to help workers affected
cans have purchased more from produc- trade deficit is a recession, like in 2009. by changes tSooutrhcees:UD.eSp.aertcmoennot mof ythfeinTrdeanseurwy, CRS Report for Congr
ers everywhere. Our total trade deficit was Between 2008 and 2009, our trade jobs in more vibrant industries.
about 2 percent of GDP in 1996; in 2015 deficit with China dropped by more than
it was about 4 percent — not large, by $40 billion as Americans spent less. These actions are not as easy as pointing
international or historical standards. Americans resumed their buying habits the finger at China, but are a lot more
as the economy recovered and in 2010, likely to make a difference.
When you look at the data, the trade defi- the overall trade deficit crawled back up.
cit with East Asia as a whole and the trade While recessions might reduce the trade
deficit with the rest of the world have deficit, they are not good for our economy
each also about doubled during this time, or workers. The growth of the trade defi- This article was first published by US-China Business
but remain proportionately the same. cit in times of a healthy economy is a sign Council.
What has changed is that China’s portion that we have disposable income to spend.
14
