China’s proposed trade deal is a con job designed specifically for Trump
by Erin Dunne
January 18, 2019 02:24 PM On Friday, markets jumped in response to news of a potential deal to end the ongoing trade war between the United States and China. Naturally, investors are happy just to hear that. But China’s proposal, to boost imports of U.S. goods and cut back on America's trade deficit with China, won’t solve any of the core issues that sparked the trade war in the first place.
Does China cheat on trade? Definitely — and unfortunately, this proposal won't stop Beijing from doing so. It merely indulges President Trump's obsession with the trade deficit.
But trade deficits are not an economic problem. They reflect the fact that that U.S. consumers, with more buying power than their Chinese counterparts, purchase more goods. When Chinese companies profit from that spending, they look for profitable ways to invest that money. That means that they often look to the United States with its strong economy and currency, investing in companies, real estate, and industry. That investment is a good thing for the economy.
But that doesn’t mean that there aren't real problems with Chinese trade.
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https://www.washingtonexaminer.com/opinion/chinas-proposed-trade-deal-is-a-con-job-designed-specifically-for-trump
