DES MOINES: To address the trade imbalances between China and the United States, which have been the focus of the Trump administration's trade policy toward China, both countries should carry out structural reforms rather than just narrow the trade deficit, experts from the two countries said here on Monday.
It's the structural issues that contributed to the trade imbalances between the two countries, Zhang Yuyan, director of the Institute of World Economics and Politics under the Chinese Academy of Social Sciences, said at the U.S.-China Think Tank Symposium held in Des Moines, Iowa, reports Xinhua.
China has maintained a high savings rate during its economic expansion, while the United States consumes a large amount of global products and services and has a very low savings rate, he said.
"This kind of structural issue is one of the primary reasons behind the trade imbalance," Zhang added.
In addition, as the global value chain develops, more and more foreign companies are investing in China, making China an important link in the chain, said Zhang.
During the 2010-2015 period, exports from foreign-owned companies in China accounted for about half of China's total exports, according to the expert.
The United States has been concerned about the trade deficit in goods with China, while China runs a deficit in bilateral services trade, which reflects the different trade structures of the two countries, he noted.