MACRO-ECONOMIC FACTORS OF SINO-US TRADE IMBALANCET

Ji. Shi ()

International Trade and Trade Policy, 2020, issue 3

Abstract: China is one of the developing countries with the most rapid development and the U.S. is de-veloped country with the strongest economic strength, economic development of the two coun-tries has become main impetus of the world economic growth. Sino-US bilateral trade has be-come the most important constituent part of global trade. With the rapid development of Sino-US bilateral trade, trade imbalance also lead great concern of the two governments and academic circles, especially after China entered into WTO, the problem of Sino-US trade imbalance be-come even more serious. This paper mainly analyzes the influence of macroeconomic factors on China-US trade deficit, as economists generally believe that savings and exchange rates are closely related to trade balance. Undervalued exchange rate can keep relatively low prices for products made in China, while the booming domestic demand in the United States provides China with a wide variety of external market opportunities. This paper points out that difference in saving rates between the two countries is an important macroeconomic reason for the contin-ued growth of China’s trade surplus with the United States in international trade. The RMB exchange rate is an influencing factor, but not a fundamental one.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:acl:journl:y:2020:id:388

DOI: 10.21686/2410-7395-2020-3-39-57

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