Original title: how absurd is Trump's "loss theory"? Wang Yi said it with an example!
Source: Beijing daily
"The surplus and deficit are not the criteria for judging right and wrong." In response to the Sino US economic and trade frictions, foreign minister Wang Yi recently responded.
As we all know, Trump today is almost an "evil woman". It's a moment to complain that Japan and EU cars are too cheap to hurt the American auto industry, and in a moment the blame for Chinese exports "cheap and cheap" is not conducive to "protecting" American backwardness. In essence, it is the set of "deficit theory" in the United States. According to his logic, there is a trade deficit of $375.2 billion between China and the United States, which means more than $300 billion has flown from the United States to China. With so much money flowing away, the United States naturally suffered losses.
It seems to be solid, but the truth is out of the hole. Is the account of import and export counted?
"Is it like someone who went to the supermarket to buy 100 yuan, the goods in the hands, but complained about losing 100 dollars," said Wang Yi, the minister.
The basic principle of doing business is freedom and equality, you like it. Today's Sino-US trade pattern is the result of market adjustment. Specifically, China's human resources cost is relatively low, and has advantaged advantages in labor-intensive industries. After a long period of development, China has a unique industrial chain in many fields. The United States is reluctant to build products with low added value, but as a necessities of life, the United States cannot do without it. China and the United States exchange of goods and services to meet the market demand and improve the welfare of American consumers, the "market economy template" to boast that the United States should not be ignorant.
The objectivity of the United States' view of deficit is not only reflected in the above aspects. Although China has certain advantages in labor-intensive industries, most of its profits are in the hands of the United States. For example, Apple can make a profit of $200 per IPhone, while Foxconn, which assembles the phones, makes less than 30 yuan. In other words, in the value chain of many products, China can only earn a little assembly costs, the real big U.S. is not included in the surplus.
In terms of high technology, this phenomenon is widespread. Whether it is aerospace, or material chips; whether it is biomedicine, or weapons and equipment, the gap between China and the United States can be seen and felt. According to statistics, if the United States liberalized high-tech export restrictions and achieved trade balance in the field, it could reduce nearly 40% deficit. But Trump's mind was clear as the United States kept restricting its high-tech exports while "crying for poverty with Golden Mountain".
Justice is in the heart. What is the situation of Sino US trade? It is not the United States that talks about itself and shows itself, and the whole world believes it. It is hoped that the United States will recognize the reality as soon as possible and treat economic and trade issues correctly. In this regard, the speech of minister Wang Yi said: "the door of China's dialogue and negotiation has always been open, but the dialogue must be based on mutual equality and respect, based on the rules, and unilateral threats and pressure will only be counterproductive."
Editor in responsibility: Yu Pengfei
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