Need to build a mutually beneficial mechanism
The U.S.' overall trade deficit is the result of its position in the global supply chain, and thus cannot be erased by China. Last year, the computer and electronics sectors' share in the U.S.' total trade deficit was 24 percent－more than $170 billion in actual terms, of which $144 billion was with China. But U.S. imports of computers and electronics from China also include products, parts and services from Japan, the Republic of Korea, Germany, France and even the U.S. itself.
To change its position on the supply chain, the U.S. first needs to overhaul its industrial sector, as history shows using trade policies to solve trade imbalance has never succeeded. Little wonder the U.S.-China Comprehensive Economic Dialogue couldn't achieve any breakthrough in this regard.
That the two sides will continue to hold such talks goes without saying, but the U.S. could feel disappointed again if it insists on using such dialogues to resolve the trade deficit issue.
The World Trade Organization has processed 525 trade disputes in 22 years, among which 39 were against China and 130 against the U.S., mostly for violating WTO rules, granting unreasonable subsidies, unfair competition, and abuse of trade restrictions.
According to the WTO, the U.S.' trade restrictive measures against the other G20 member countries in the first five months of this year increased by 26 percent year-on-year, while similar measures taken by the other G20 members against the U.S. declined by 29 percent. This makes it obvious the U.S. has become an obstacle to fair trade.
Sino-U.S. trade therefore should focus more on investment, technology, research and development, finance, service trade, protection of intellectual property rights, law, culture, tourism and the joint development of other markets, and building a comprehensive, stable and mutually beneficial mechanism.
He Weiwen, a researcher at the Center for China and Globalization, and former commercial councilor at China's Consulate Generals in San Francisco and New York.
