Evans Chamberlain Asset Management - US Urges China to Reduce Trade Surplus
Evans Chamberlain Asset Management - The Trump administration is calling for China to reduce its trade surplus with the United States by $100 billion.
TAIPEI, Taiwan, March 16, 2018 (Newswire.com) - Evans Chamberlain Asset Management reported President Donald Trump tweeted that China had been urged to come up with a strategy to cut its trade imbalance with the U.S.
Evans Chamberlain Asset Management economists reported that last year the United States had an all-time-high trade gap of $375 billion with China. This made up 66 percent of the U.S. global trade deficit in 2017. China also reported that its surplus with the U.S. was approximately two-thirds of its global surplus of $422.5 billion.
A White House spokeswoman did not offer any further details about how the Trump administration proposes China would achieve the surplus-reducing goal. The call for China to reduce its trade surplus comes as the U.S. government is in the process of imposing tariffs on imports of Chinese products.
Evans Chamberlain Asset Management economists also say that it is not clear if the called-for reduction in the trade surplus would address U.S. objections about China’s investment policies. The policies mean that U.S. businesses are required to transfer technology to Chinese ventures to acquire market access.
The Chinese press believes the United States must take the initiative if it wants to cut the trade deficit, stating that Americans must work harder and reforms must be implemented in line with the international market demand instead of expecting the rest of the world to change.
Evans Chamberlain Asset Management analysts believe that developed countries will not appease the U.S. in the event of a trade war. While China will try to avoid a trade war, it will not bow to the U.S. if one materializes.
Source: Evans Chamberlain