China And South Korea Trade Deficit With The U.s. Trade Deficit Is A Comparative Analysis

U.S.A is the biggest source of surplus of China, while China is the biggest source of deficit of U.S.A. Similarly, China becomes the biggest source of surplus of Korea, while Korea becomes the biggest source of deficit of China. However, America's reaction to the deficit is totally different from China's. The former seems to be fierce, while the latter indifferent. This essay compared the deficit between US-China and China-Korea from four aspects-composition of imports and exports, FDI, trade barrier and trade strategy. The author agreed that compared to U.S.A, China had more reasons to take measures, such as speeding up the adjustment of composition of imports and exports, making the most use of Korea's FDI in China to develop the native industry and eliminating trade barriers to create a fair trade environment, to benefit the nation on the base of economic laws.