To: TobagoJack who wrote (131494 ) 3/6/2017 6:21:21 AM From: elmatador Read Replies (1) | Respond to Why the US has a deficit with China? Answer: Because China floods the US with manufacture products.Stop reading the Chinese press. You are being seriously misled. America's trade gap with China also widened considerably over the same period. According to statistics from the Manufacturers Alliance for Productivity and Innovation (MAPI), the U.S. trade deficit with China rose by 8 percent to $498 billion in 2012, while the Chinese surplus increased 15 percent, to $755 billion. MAPI officials point out that from 2009 to 2012, "the U.S. deficit rose by $172 billion, or 53 percent, while the Chinese surplus soared by $333 billion, or an extraordinary 79 percent." In addition to striking a blow to national pride, the comparatively slower growth in U.S. production versus Chinese manufacturing has also cost many jobs. MAPI found that the three-year increase in the U.S. trade deficit resulted in the loss of 700,000 to 1.4 million American manufacturing jobs, including 140,000 to 280,000 jobs in 2012 alone. (That is why Trump got his votes) China's output gains have been driven primarily through domestic demand, as "gains in new business allowed manufacturers to step up production by adding jobs and making more purchases," the Associated Press reports. HSBC's chief China economist, Qu Hongbin Qu, told AP that while external demand was still "tepid," the domestic-driven restocking process "is likely to add steam to China's ongoing recovery in the coming months." However, many experts consider the rapid growth in Chinese manufacturing to be unsustainable unless the country begins to reorient its economy toward more advanced processes and complex products . China is currently in an "edgy transition," the Financial Times notes. "As the country ages and reaches the limits of physical labor and capital accumulation, its growth model will have to shift towards transformative technology and innovation." (This time around China has to buy companies or invest in R&D to become leading at the edge as it leaves behind the catch up phase. Case in point cars. It was investing in carmaking just to disocver the western companies have moved to electrical connected cars. These electric cars most likely never will be built in China. They will be built in Japan U and Europe using robots. Less likely hood Chinese manufacturers will pirate them.
