It shows that globalization has distorted trade balances. The US trade deficit with China isn't as high as the numbers show.... since those numbers don't take into account where the parts of the imported products come from. https://www.bloomberg.com/view/arti...hina-trade-deficit-is-smaller-than-it-appears
Well sir, no matter how you slice it, to me the net US trade deficits with the rest of the world is undeniable.
Not denying that. But that largely has to do with being the reserve currency. Big part has come back through investments etc... you know... it's all offset, the balance of payments should be about zero. So, in return for running a trade deficit... you get cheap financing since treasuries are bid up by foreigners. If you as the USA import less and export more... foreigners have less USD in capital, so they buy less USD treasuries/bonds. Those will then be lower in value, basically increasing yield... which means higher financing rates. But it is an interesting article... shows the deeper effects of globalization and that a trade deficit with China is there.. but part of that deficit actually comes from other countries, from which China imports... then uses those imports to built something which in return is exported (e.g. to USA).