Study Of U.S.-China Trade Imbalance Issues

With the rapid development of the U.S.-China bilateral trade, the imbalanced of the U.S.-China bilateral trade is increasingly outstanding, which has also affected the development of the trade relationship. Moreover, The U.S. Government often set off trade disputes as the victim of the imbalance of U.S.-China bilateral trade, and impose trade sanctions on China. Does China is the root of the trade problem with U.S., does the trade surplus means to the profits, and Does China have to take responsibility for the trade surplus? We study the reason of the imbalance of U.S.-China bilateral trade with questions.There are many reasons for the imbalance of U.S.-China bilateral trade, first of all, neither the U.S. nor the Chinese official trade data reflect completely and accurately the true picture of the bilateral trade balance, the U.S. official trade data is overestimate the imbalance, while the China official trade data is underestimate. So we make three adjustments to estimate the export and import data of the two governments: (1) FAS-FOB and CIF-FOB conversions. (2) re-export and re-export markups and (3) trade in services. Then the bilateral trade balance between the U.S. and China in goods and services combined may be estimated to US$154.23 billion.Secondly, after we understanding the real scale of the imbalance of U.S.-China bilateral trade, we should realized that this imbalance can't be solved at once, but the U.S.-China bilateral trade surplus doesn't means to the profit. There are many reason for the imbalance, the industry transfer in East-Asia make China take in their surplus with U.S.; FDI and the developing of processing trade in China speed up the trade surplus but hide distribute of the profit; the whole imbalance of U.S. national economy cause the imbalance of international trade in U.S., the imbalance of U.S.-China bilateral trade is just a part of the imbalances of international trade; the trade between U.S. and China is the mutual compensation trade, but U.S. restrictions on exporting Hi-tech products to China enlarge the imbalance of U.S.-China bilateral trade.Therefore, China is not the root of the imbalance of U.S.-China bilateral trade, and the trade surplus doesn't means to the profit, the trade deficit with China has limited adverse impact on U.S. and has a positive side. So when the U.S. government set off trade disputes, impose trade sanctions on China, we can make the objective solutions.