Part 8/13:
US-China Dynamics and Debt Finance
The United States contributes to this imbalance by running significant budget deficits and encouraging foreign investment in US debt, effectively financing its own trade gaps. In this dynamic, the US is a major importer of Chinese goods, and Chinese surplus accumulates accordingly.
The Impact of US Tariffs: Why Haven’t They Reduced China's Surplus?
A significant thread in recent trade discussions revolves around US tariffs imposed during the Trump administration. These tariffs aimed to reduce China's trade surplus by making Chinese goods more expensive in America. Yet, the results have been more nuanced.