US-China Trade Friction: Zhao: Global manufacturing benefits Wall Street
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The trade imbalance between the United States and China is the result of the global production network. That's according to Zhao Zhongxiu, a vice president at the University of Business and International Economics and an expert on the global production chain. Zhao says the current situation is related to America's economic structure and can't change overnight.
ZHAO ZHONGXIU, VICE PRESIDENT UNIVERSITY OF BUSINESS AND INTERNATIONAL ECONOMICS "When the US has more and more manufacturing offshore, it takes advantage of the lower cost, or the comprehensive lower cost in the rest of the world. Investors of the US, the Wall Street gained huge profits from the international production scheme. Now President Trump tries to change this, as he wants the manufacturing back. This dispute has a long history. With the rising of industrialization, there is always a conflict between the capital and the workers. For the US, this trade imbalance started in the 1970s. This related in the economic structures. You cannot change this overnight or through one deal you can change the structure matters. It doesn't work."