Sino-US trade: multilateral and bilateral perspectives

ZHU Min1 MIAO Yanliang2

(1.National Institute of Financial Research, Tsinghua University)
(2.Central Foreign Exchange Business Center)

【Abstract】The colossal trade deficits of the United States are a direct consequence of its long-standing domestic structural and policy imbalances supported by the US dollar’s exorbitant privilege as the dominant international reserve currency. China, on the contrary, has focused on transforming its domestic economy to achieve external rebalancing through internal restructuring, which provides an exemplary case for solving the problem of trade imbalance. It requires both sides, especially the US, to face up to the domestic structural issues of the US to resolve their trade disputes; a trade war will only exacerbate the US economic imbalance. China should adhere to its righteous position, focus on its long-term interests, and accelerate its domestic reforms.

【Keywords】 trade war; economic policy; rebalancing; Sino-US trade;


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CN: 11-3799/F

Vol , No. 04, Pages 24-34+4

July 2018


Article Outline


  • 1 Internal imbalance being the essence of the US trade deficit
  • 2 China promoting external rebalancing through internal rebalancing
  • 3 Relative competitiveness of and division of labor between China and the US determining bilateral trade scale and structure
  • 3 More Chinese imports from the US being unable to fundamentally reverse external imbalance of the US
  • 4 Intensifying structural reform to increase savings and improve labor productivity being the only way to eradicate external imbalance
  • 5 Adhering to righteous position and focusing on domestic reform being necessary for China in response to trade challenges