For­eign Min­istry spokesper­son says blam­ing trade deficit on China not ob­jec­tive

Global Times US Edition - - BIZUPDATE -

The deficit of the US in its trade with China is the re­sult of mul­ti­ple fac­tors, in­clud­ing global divi­sion of la­bor and the two coun­try’s var­ied com­pet­i­tive strengths, an of­fi­cial with China’s For­eign Min­istry said on Wed­nes­day.

The state­ment was made on US Pres­i­dent Don­ald Trump’s com­ments that China has ob­tained over $500 bil­lion a year from the US to re­build it­self.

“The US should not blame China for such a trade deficit, as its self-im­posed re­stric­tions on the ex­ports of high-value added prod­ucts pre­vented China from buy­ing more goods,” said Lu Kang, spokesper­son of China’s For­eign Min­istry.

Lu said that China’s for­eign trade has al­ways been con­ducted ac­cord­ing to mar­ket rules and China has con­ducted fair trade over the years.

And the US-China trade def- icit is def­i­nitely not a one-way street in which wealth is sent to the Chi­nese side as the US side claimed, he said.

The US ben­e­fited tremen­dously from its trade and eco­nomic co­op­er­a­tion with China, Lu pointed out.

Ac­cord­ing to es­ti­mates by some US agen­cies, US-China trade saves $850 a year for each Amer­i­can house­hold.

The Deutsche Bank said in a June re­port that the US actu- ally gained more net com­mer­cial in­ter­est from its trade with China.

“No­body wants to do a loss­mak­ing busi­ness, not to men­tion do­ing it for more than 20 years,” the spokesper­son said.

The US Com­merce De­part­ment said on Fri­day that the US trade deficit in­creased 6.4 per­cent to $53.2 bil­lion, widen­ing for a third straight month and reach­ing a record high since Fe­bru­ary de­spite Trump’s aim of nar­row­ing the trade gap with China and other coun­tries.

Against Trump’s ex­pec­ta­tions, China’s mer­chan­dise trade sur­plus with the US also grew in Au­gust to a record of $38.6 bil­lion, up from $36.8 bil­lion in July.

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