There’s been a long talk about unequal trade relations between the United States and China. It’s been a subject of many political campaigns, including the latest one where Donald Trump has promised to do something about it. Yet, in 2017, the American trade deficit with China has hit a record $275 billion, CNBC reports.
China is doing very well exporting and it has surpluses with many other countries. Last year, the total Chinese trade surplus was $422 billion. And China now wants to expand it with the Silk Road initiative.
President Trump claims China pursues unfair trade practices. And he is pretty much right about it. When it comes to intellectual property, for example, it is copied and used freely in China. The Chinese government has also banned Google, YouTube, and Facebook in China. Not only so it can better control dissent in the Middle Kingdom, but also to let China-based companies to take space Facebook and the likes would otherwise occupy.
When it comes to trade denominated in dollars, Chinese exports have risen by 7.9 percent in 2017, while imports have grown by 15.9 percent the same year. Still, the surplus is huge.
There was a big drop in trade between China and North Korea, but it was due to politics. Last year, imports from North Korea have dropped by over 80 percent, while exports decreased by 23 percent.