RE: Let's deficits with China:

Posted By: Charlie
Date: Monday 13 May 2019, at 02:59 pm
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As I said above, the trade deficit alone is not meaningful. Trump also has this wrong. We should buy from China whenever it is in our interest and due to their labor costs, that is often, and will /should drive a deficit. Now that we are not anxious about the trade deficit, China should not cherry pick restrictions if we do not and they should have a modicum of respect for IP. Because they will work for less that we are willing, they can be a great trading partner. They simply cannot be more restrictive than we are in return. As it relates to strategic technologies, have no discussion, simply require that it is in-house. Mirror their trade practices with nonstrategic products and quit all the discussion.

Trade deficit due to one-sided restrictions and total lack of respect for IP then can be a problem. The mixture of good and bad deficit year to year takes a lot of work to understand.
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