Study Of The U.s. Trade Deficit

As the most powerful economy all over the world, the United States, however, has a long-standing problem of large trade deficit against other countries, which has been a focus concerned by theorists and government department. This paper elaborates the position of U.S. trade both in the domestic economy and the world economy, and analyzes main courses of protracted U.S. trade imbalance, trying to explicate that trade deficit helps keep economic growth of the United States, and U.S. foreign trade structure represents U.S. competition strength. This article also presents that American Financial Crisis makes U.S. trade imbalance alleviated, and then investigates the impact of U.S. trade deficit against China on Sino-US economic and trade relations. In the end, according to main problems U.S. faces during the financial crisis, some forecasts are made on future American trade policy.