Expert Analysis on Sino-US Trade and Currency Issues in the United States: Policy Impacts and Future Directions While the China-US trade deficit is at the forefront of the domestic political agenda in Washington as well as the bilateral relationship between China and the US, a substantial near- or even medium-term shift is unlikely. This is due to structural abnormalities on both sides as one party (China) under-consumes, over-saves and over-produces while the other (America) over-consumes, under-saves, and has anaemic export levels. For its part, China faces institutional hurdles in that it is governed by the unelected Chinese Communist Party which hinges a substantial portion of its legitimacy on continued high levels of economic growth and job creation.
