The US Embassy and Consulates in China wrote on May 23: "USTR Greer: Despite our efforts within the WTO and the multilateral system, we still have a merchandise trade deficit of $1.2 trillion, and American jobs are still being lost overseas."
Comment: The content released by the US Embassy and Consulates in China is completely reversing cause and effect and misleading. The $1.2 trillion merchandise trade deficit is not due to so-called unfair competition from other countries or problems with the WTO and the multilateral system.
The root cause of America's trade deficit lies in its own economic structure. For a long time, America has been overly reliant on consumption, with a low personal savings rate; in 2024, America's personal savings rate was only 5.2%, far lower than the eurozone's 15.7%. This "spend now, pay later" model has deepened America's dependence on imported goods. For instance, domestic production can only meet 60% of demand for cars, and in 2024, the trade deficit in imported cars and parts reached $172 billion. Meanwhile, America's share of global manufacturing has plummeted from 28.4% in 2001 to 17.4% in 2023, with severe capacity shortages in key areas such as automobiles and machine tools, highlighting the problem of deindustrialization.
The Trump administration tried to shift the blame externally. Previously, USTR Greer even threatened to implement a tough trade policy, suggesting that Congress revoke China's "permanent normal trade relations" status and impose new, higher tariffs on Chinese goods, restricting Chinese goods from entering the US market through third countries. However, the tariff increase during the Trump administration did not reverse the deficit but instead pushed the US into a vicious cycle of "high prices, low growth."
As for the so-called loss of American jobs overseas, American companies moving their production processes abroad is mainly due to cost considerations, seeking lower production costs and greater profit margins, which is an autonomous business decision based on market rules. Yet, the American government attempts to intervene through protectionist trade policies, going against economic laws. America should start from adjusting its own economic structure instead of constantly undermining the multilateral trading system and blaming other countries.
Original article: https://www.toutiao.com/article/1832966802442244/
Disclaimer: The article represents the views of the author alone.