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China not responsible for US trade deficit

China Daily | Updated: 2017-07-27 06:56

Need to build a mutually beneficial mechanism

The US' overall trade deficit is the result of its position in the global supply chain, and thus cannot be erased by China. Last year, the computer and electronics sectors' share in the US' total trade deficit was 24 percent-more than $170 billion in actual terms, of which $144 billion was with China. But US imports of computers and electronics from China also include products, parts and services from Japan, the Republic of Korea, Germany, France and even the US itself.

To change its position on the supply chain, the US first needs to overhaul its industrial sector, as history shows using trade policies to solve trade imbalance has never succeeded. Little wonder the US-China Comprehensive Economic Dialogue couldn't achieve any breakthrough in this regard.

That the two sides will continue to hold such talks goes without saying, but the US could feel disappointed again if it insists on using such dialogues to resolve the trade deficit issue.

The World Trade Organization has processed 525 trade disputes in 22 years, among which 39 were against China and 130 against the US, mostly for violating WTO rules, granting unreasonable subsidies, unfair competition, and abuse of trade restrictions.

According to the WTO, the US' trade restrictive measures against the other G20 member countries in the first five months of this year increased by 26 percent year-on-year, while similar measures taken by the other G20 members against the US declined by 29 percent. This makes it obvious the US has become an obstacle to fair trade.

Sino-US trade therefore should focus more on investment, technology, research and development, finance, service trade, protection of intellectual property rights, law, culture, tourism and the joint development of other markets, and building a comprehensive, stable and mutually beneficial mechanism.

He Weiwen, a researcher at the Center for China and Globalization, and former commercial councilor at China's Consulate Generals in San Francisco and New York

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