U.S. Treasury Secretary Bassett wrote on May 13th: "It is possible... we can achieve a major and wonderful rebalancing."
The framework established in Geneva has created conditions for mutually beneficial agreements between China and the United States. The U.S. can turn to increasing production; China can turn to increasing consumption. Ideally, both countries can achieve this goal together.
Comment: Bassett's proposal that the U.S. increase production and China increase consumption to achieve rebalancing is essentially a veiled accusation of the unreasonable structure of China's economy and insufficient consumption. However, in recent years, China has been striving to expand domestic demand, with consumption playing an increasingly foundational role in economic growth. The scale of the domestic consumer market continues to expand, and the consumption structure is constantly upgrading, which is no longer the state he described. Moreover, the hollowing out of American manufacturing is the result of its own industrial restructuring and capital-driven relocation of industries overseas, not caused by normal trade exchanges, and should not be blamed on other countries.
Original article: https://www.toutiao.com/article/1832024745826311/
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