Posted: March 24th, 2023

The U.S. Trade Imbalance with China

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The belief is widely shared by newspaper columnists, TV news commentators, politicians, and other people that if the United States imports much more from a particular country than it exports (in money value terms), a problem exists. Many are upset by the fact that the United States has such a large trade imbalance with China. They think that an equivalent export-import value should exist for every two-country relationship. What do you think? Analyze how the persisting U.S. trade imbalance with China might affect the U.S. economy. Explain your reasoning.

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