China should Cut Trade Deficit, says the US president

heylouis

Ad Honorem
Apr 2013
6,397
China
#1
"China has been asked to develop a plan for the year of a One Billion Dollar reduction in their massive Trade Deficit with the United States. Our relationship with China has been a very good one, and we look forward to seeing what ideas they come back with. We must act soon!"

says the US president on the twitter.

well, in fact, he means 100 billion $. but let us not focusing on these things.


quite embarrassing, that could be very difficult
1. that is almost 1% of annal chinese gdp value. that means chinese should spend 1% gdp to buy US products, which will be very very large amount of goods.
2. i believe we already understand about the Trade Deficit is not so simple and obvious as reported by statistics. for example, the product iphone come into its final form in china, and is sold to everywhere from china. but its cpu is from US, the screen is from Korea, censors from all over the world... but it is finally made in China. the trade deficit counted the input and output, but ignored the intermediated progresses
3. there are goods in US China wants to buy, but cannot buy... for example high end cpus, high end materials...etc. the US normal productions, such as normal steels, cloth etc. do not worth chinese to purchase, too more expansive...

thus, unfortunately, I bet ... one billion deficit can be cut...but 100 billion cannot be....
 

GogLais

Ad Honorem
Sep 2013
5,397
Wirral
#2
"China has been asked to develop a plan for the year of a One Billion Dollar reduction in their massive Trade Deficit with the United States. Our relationship with China has been a very good one, and we look forward to seeing what ideas they come back with. We must act soon!"

says the US president on the twitter.

well, in fact, he means 100 billion $. but let us not focusing on these things.


quite embarrassing, that could be very difficult
1. that is almost 1% of annal chinese gdp value. that means chinese should spend 1% gdp to buy US products, which will be very very large amount of goods.
2. i believe we already understand about the Trade Deficit is not so simple and obvious as reported by statistics. for example, the product iphone come into its final form in china, and is sold to everywhere from china. but its cpu is from US, the screen is from Korea, censors from all over the world... but it is finally made in China. the trade deficit counted the input and output, but ignored the intermediated progresses
3. there are goods in US China wants to buy, but cannot buy... for example high end cpus, high end materials...etc. the US normal productions, such as normal steels, cloth etc. do not worth chinese to purchase, too more expansive...

thus, unfortunately, I bet ... one billion deficit can be cut...but 100 billion cannot be....
Not that I wish to seem pedantic but China has a trade surplus with the US surely?
 

heylouis

Ad Honorem
Apr 2013
6,397
China
#6
news, since the president signed the Taiwan Travel Act hours ago, i believe china is not going to cut a cent of Trade Deficit. the trade problem was not a chinese created problem anyway.

the sino-US relationship is going to be stagnated or even broke up since the signing of the act.
the people's congress is in progress now, a response will be delivered to US
 
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heylouis

Ad Honorem
Apr 2013
6,397
China
#8
I am dumb and I don't understand this?
the US president wants china to cut 100 billion trade deficit.
i believe that is very difficult to be done for at least three reasons, 1 it is large amount of money, while nobody knows how to do it; for example nobody knows what kind of US good chinese should buy 2. the trade deficit is not a full meaningful data that accounts the contribution of trading, because under the context of global economy, lots of intermediated progress is not accounted by this data. i used the iphone example, it is sold to US from china, though appears that china earns most of the iphone profits, the impression is not true. 3. the US market is not fully open to china, china has import enough as limited by the US policies. only the high-end products are attractive to chinese, but china cannot purchase them. thus there is no way the trade deficit could be reduced in a reasonable way
 

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