Reasons for the trade imbalance between China and the United States of America

Abstract

China and the United States of America are each other's largest trading partner and an important source of investment. In 2018, the bilateral trade volume between them in goods and services exceeded 750 billion dollars, while direct investment in both directions approached 160 billion dollars.

However, bilateral trade relations between the two countries have become increasingly tense since March 2018, as a result of the tariffs imposed by the "Trump" administration on Chinese goods.

The main reasons behind Trump's decision to impose customs duties on Chinese goods are to protect the intellectual property rights of American companies and reduce the deficit in the US trade balance with China, and therefore imposing high customs duties on Chinese exports, according to the US administration's vision, could solve This deficit.