In an article for Beijing Review, Zheng Jingping, former Deputy Commissioner of the National Bureau of Statistics, probed the fundamental causes of the United States’ trade deficit. His main points follow: 

The United States’ massive trade deficit is attributable to the dollar’s role as the predominant international reserve currency, coupled with a low savings rate at home.  

The key to resolving the issue lies in giving up the dollar’s status and increasing domestic savings and productivity. Otherwise, if the status quo is maintained, the United States should see to it that risks associated with excessive supply of the dollar and huge national debt are well managed.  

There is no reason whatsoever for it to play up its trade deficit, which has been a boon to the United States, allowing the country to base its consumption and investment on the resources of those with a surplus.  

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