While the U.S. China Strategic Economic Dialogue is held in Washington, a lot of discussions about Chinese economy and U.S. China relationship are published in the Journal. As I recall, WSJ includes pet food scandal, trans-import and of course the “not-so-satisfactory” dialogue progress in recent reports. Today, they listed a series of numbers to sort out U.S. – China relations.
The U.S. trading deficit in goods with China is $232.6 billion ($287.8B import minus $55.2B export) is greater than the deficit with both European Union and OPEC, the second and third largest trading deficit U.S. posts with. Among the $287.8 billion imports from China, 80% are consumer goods. The top four goods categories are computer parts, household goods, toys/recreation and computers, each accounts more than 10% of the total imports by value. China accounts 80% of US toy market by value, half of the footwear market and near half the TV and consumer-electronics market. Among U.S. exports to China, semiconductors, civilian aircraft, soybeans(!), plastic materials and raw cotton top the list.
Dollar dominated assets account about two-thirds of China’s $1.2 trillion foreign-exchange reserves. The $420 billion in treasury bills is about 20% of all the foreign-held debt of the U.S. government. China’s recent investment of $3 billion to the U.S. private equity firm Blackstone is widely reported by national and local news coverage.
Here are two quotes from the economic dialogue:
“There is a growing skepticism in each country about the other’s intentions. Unfortunately, in America this is manifesting itself as anti-China sentiment as China becomes a symbol of the real and imagined downside of global competition. ” — Henry Paulson, Treasury Secretary.
“We should not easily blame the other side for our own domestic problems. ” — Wu Yi, Chinese Vice Premier.