Zeng Peiyan, Former Vice Premier of the State Council: The United States Needs a Correct Understanding of the Trade Deficit

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 Zeng Peiyan, Former Vice Premier of the State Council: The United States Needs a Correct Understanding of the Trade Deficit


Data map. Photo Source: Visual China

Zeng Peiyan believes that the trade deficit of the United States has a long history, but with the deepening development of globalization, the format, mode and structure of international trade has undergone profound changes, from goods trade to goods trade and services trade, and from final goods trade to intermediate goods trade. According to the research data of the Ministry of Commerce of China, the US trade deficit with China in 2018 was 182.7 billion US dollars, which was about 43% less than the traditional total trade value method.

The US trade deficit with China should be viewed comprehensively and objectively, Zeng Peiyan said in his speech, pointing out several facts about the trade deficit: in bilateral trade, although the US trade in goods with China is a deficit, the service trade is a surplus; the US trade deficit with China is largely a trade deficit for the whole East Asia region; and the angle of gross national product (GNP). The U.S. trade benefits are dominant; the U.S. trade deficit with China has been overestimated for a long time.

In addition, Zeng Peiyan believes that the United States is a real beneficiary of economic and trade with China. It is reported that, on the one hand, the United States has gained a large number of international coins by virtue of the dominant position of the United States dollar; on the other hand, Sino-US trade has provided American consumers with a large number of high-quality and low-cost goods; on the other hand, American enterprises have received substantial returns in the Chinese market; and finally, China has provided the United States with a large number of low-cost dollar capital. Zeng Peiyan pointed out that the US launched trade friction with China and escalated constantly. The Chinese government has promoted Sino-US trade negotiations with great sincerity. He said that China and the United States can win-win each other, there are huge trade transactions between the two sides, and the two countries can become partners. In his view, in todays economic globalization, the relationship between various economies is different from the past, forming an integrated pattern of you have me, I have you. We hope that China and the United States will respect each others core interests, address their respective legitimate concerns, implement the principles and directions set by the heads of state of the two countries, act in a pragmatic and progressive manner, and reach mutually acceptable trade agreements. Zeng Peiyan said that this is not only of historic significance to bilateral economic and trade relations, but also of exemplary significance to international economic and trade cooperation. Source: Editor-in-Charge of CNN: Xun Jianguo_NN7379

In addition, Zeng Peiyan believes that the United States is a real beneficiary of economic and trade with China. It is reported that, on the one hand, the United States has gained a large number of international coins by virtue of the dominant position of the United States dollar; on the other hand, Sino-US trade has provided American consumers with a large number of high-quality and low-cost goods; on the other hand, American enterprises have received substantial returns in the Chinese market; and finally, China has provided the United States with a large number of low-cost dollar capital.

Zeng Peiyan pointed out that the US launched trade friction with China and escalated constantly. The Chinese government has promoted Sino-US trade negotiations with great sincerity. He said that China and the United States can win-win each other, there are huge trade transactions between the two sides, and the two countries can become partners. In his view, in todays economic globalization, the relationship between various economies is different from the past, forming an integrated pattern of you have me, I have you. We hope that China and the United States will respect each others core interests, address their respective legitimate concerns, implement the principles and directions set by the heads of state of the two countries, act in a pragmatic and progressive manner, and reach mutually acceptable trade agreements. Zeng Peiyan said that this is not only of historic significance to bilateral economic and trade relations, but also of exemplary significance to international economic and trade cooperation.