2018年CRI Trade deficit with China a "Made-in-the-USA" problem: US economist

 

“The US total trade deficit¹ is determined² by the US. We’ve run a constant trade deficit in the United States in total since 1975 for every single year. We don’t save enough. We invest much more than we save. Getting China to reduce its bilateral³ trade deficit by hundreds of billion dollars with the United States is not going to shrink the total deficit at all.”

                                                                           --Steve Hanke, professor of applied⁴ economics at Johns Hopkins University

A US economist⁵ has said that America's total trade deficit, and its deficit with China, are "made-in-the-USA" problems and have nothing to do with China.

In an exclusive interview with China Radio International, Steve Hanke, professor of applied economics at Johns Hopkins University, also said that to deal with trade disputes with China, the United States should seek legal and commercial means within the framework of the WTO and other international organizations.

Professor Hanke previously⁶ served as a Senior Economist on President Ronald Reagan's Council of Economic Advisers⁷ in 1981-82.

For more on the trade relations between China and the US, including the recent tariffs⁸ move made by the Trump⁹ administration, here's the interview between Steve Hanke and our Washington correspondent Liu Kun.

Q: How do you comment on the policy take by the Trump administration against China on trade and intellectual property  disputes?

A: There’re ignorant of international trade arithmetic in the Trump administration. And that’s not been the only administration that has this problem in the United States. The trade deficit is made in the USA trade deficit. It’s not made in China or any foreign country. The US total trade deficit is determined by the US. It has nothing to do with China or Korea or the European Union or anybody else. We’ve run a constant trade deficit in the United States in total since 1975 for every single year. So why I said it; it has nothing to do with foreigners; it’s determined by the US. We don’t save enough. We invest much more than we save. We have government deficits¹⁰ almost every year and those deficiencies between investment and savings¹¹ determine the level of our total trade deficit. Getting China to reduce its bilateral trade deficit by hundreds of billion dollars with the United States, which is a goal they have, is not going to shrink the total deficit at all. It will have no effect at all. What if China magically would reduce their bilateral surplus with the United States, that surplus will be filled in with a hundred billion dollars by Koreans, Vietnamese, Europeans; so the total pie would be the exactly the same size. 

Q: How do you comment on the Chinese reaction so far?

A: I think it’s very mild, very majored and that might be true today. Let me give you an example from the 1980s. Then the big bilateral trade deficit the US had was Japan. Japan was huge. Sixty percent of total trade deficit the United States had with the rest of the world was for by Japan. We forced them to stop sending Japanese cars to the United States and they agreed to do it. My worry is that China is a huge powerful country and I personally do not think China would allow itself to be pushed around like Japan.

Q: In reality what are the better ways to solve the intellectual property and trade disputes with China for the United States?

A: For one thing I agreed with Chinese point of view that you should use the World Trade Organization as much as you possibly can. That’s one. And you should also use contracts. Many contract provisions can be dealt with through the International Chamber¹² of Commerce, and World Bank Arbitration¹³ and things like this. They should go for legal and commercial ways. This is commerce.

1 deficit   

n.亏空，亏损；赤字，逆差

参考例句：

• The directors have reported a deficit of 2.5 million dollars.董事们报告赤字为250万美元。
• We have a great deficit this year.我们今年有很大亏损。

2 determined   

adj.坚定的；有决心的

参考例句：

• I have determined on going to Tibet after graduation.我已决定毕业后去西藏。
• He determined to view the rooms behind the office.他决定查看一下办公室后面的房间。

3 bilateral   

adj.双方的，两边的，两侧的

参考例句：

• They have been negotiating a bilateral trade deal.他们一直在商谈一项双边贸易协定。
• There was a wide gap between the views of the two statesmen on the bilateral cooperation.对双方合作的问题，两位政治家各自所持的看法差距甚大。

4 applied   

adj.应用的；v.应用，适用

参考例句：

• She plans to take a course in applied linguistics.她打算学习应用语言学课程。
• This cream is best applied to the face at night.这种乳霜最好晚上擦脸用。

5 economist   

n.经济学家，经济专家，节俭的人

参考例句：

• He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
• He's an economist who thinks he knows all the answers.他是个经济学家，自以为什么都懂。

6 previously   

adv.以前，先前（地）

参考例句：

• The bicycle tyre blew out at a previously damaged point.自行车胎在以前损坏过的地方又爆开了。
• Let me digress for a moment and explain what had happened previously.让我岔开一会儿，解释原先发生了什么。

7 advisers   

顾问，劝告者( adviser的名词复数 )； （指导大学新生学科问题等的）指导教授

参考例句：

• a member of the President's favoured circle of advisers 总统宠爱的顾问班子中的一员
• She withdrew to confer with her advisers before announcing a decision. 她先去请教顾问然后再宣布决定。

8 tariffs   

关税制度； 关税( tariff的名词复数 )； 关税表； （旅馆或饭店等的）收费表； 量刑标准

参考例句：

• British industry was sheltered from foreign competition by protective tariffs. 保护性关税使英国工业免受国际竞争影响。
• The new tariffs have put a stranglehold on trade. 新的关税制对开展贸易极为不利。

9 trump   

n.王牌，法宝；v.打出王牌，吹喇叭

参考例句：

• He was never able to trump up the courage to have a showdown.他始终鼓不起勇气摊牌。
• The coach saved his star player for a trump card.教练保留他的明星选手，作为他的王牌。

10 deficits   

n.不足额( deficit的名词复数 )；赤字；亏空；亏损

参考例句：

• The Ministry of Finance consistently overestimated its budget deficits. 财政部一贯高估预算赤字。 来自《简明英汉词典》
• Many of the world's farmers are also incurring economic deficits. 世界上许多农民还在遭受经济上的亏损。 来自辞典例句

11 savings   

n.存款，储蓄

参考例句：

• I can't afford the vacation,for it would eat up my savings.我度不起假，那样会把我的积蓄用光的。
• By this time he had used up all his savings.到这时，他的存款已全部用完。

12 chamber   

n.房间，寝室；会议厅；议院；会所

参考例句：

• For many,the dentist's surgery remains a torture chamber.对许多人来说，牙医的治疗室一直是间受刑室。
• The chamber was ablaze with light.会议厅里灯火辉煌。

13 arbitration   

n.调停，仲裁

参考例句：

• The wage disagreement is under arbitration.工资纠纷正在仲裁中。
• Both sides have agreed that the arbitration will be binding.双方都赞同仲裁具有约束力。