Part 10/13:
This circumvention explains why the bilateral trade deficit between China and the US has shrunk marginally, but China's overall trade surplus remains large. Effective trade mitigation would have needed more comprehensive, multilateral tariff strategies rather than bilateral measures, which were easier to bypass.
Are These Trade Imbalances Sustainable?
Many analysts warn that China's surpluses are "unsustainable" and could provoke friction with trade partners, especially in Europe. The conventional view holds that persistent global surpluses and deficits will eventually realign economically, leading to market corrections.