This is a syndicated repost published with the permission of Money Morning - We Make Investing Profitable. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.
Donald Trump is right about one thing: China is killing the U.S. on trade.
A new analysis from HowMuch.net released yesterday shows that theU.S.-China trade gap isn’t just at a historic high — it’s at its most imbalanced ever…
The United States exported $116 billion to China in 2015 – which isn’t bad. In fact, it’s 30 times what it had been three decades ago, in 1985.
But by comparison, China exported more than four times that amount to the United States last year, at $481 billion. That’s a $365 billion gap between the States and the Red Dragon in 2015 – the largest ever realized.
Now here’s a look at exactly how that imbalance came to be…
The Origins of the U.S.-China Trade Gap
Back in 1985, the United States exported $3.9 billion worth of trade to China. We imported goods and services from the Red Dragon for exactly the same amount.
But then the scales tipped…
America’s exports to China progressed fitfully starting in 1986 – even reverting to “negative growth” territory that year and on four other occasions: 1990, 1999, 2009, and 2015. Last year saw the most serious drop, down $7.5 billion from 2014.
Meanwhile, China’s exports to the U.S. grew exponentially (with the exception of 2009 – the peak of the Great Recession). In fact, between 1985 and 2000, China’s exports increased by $100 billion – from $3.9 billion to $103.9 billion.
And from there it mostly kept growing. Even after China’s exports dropped by a whopping $41.4 billion in 2009, they increased by $68.3 billion (68.6%) in 2010, bringing them to a massive total of $365 billion that year — completely compensating for the previous year’s loss.
Have a look at this progressive imbalance. Here’s a year-by-year display of the trade gap between the U.S. and China over the past three decades…
Sources: HowMuch.net, Money Morning Staff Research
To get full access to all Money Morning content, click here
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The post China Is Killing the U.S. on Trade appeared first on Money Morning – We Make Investing Profitable.
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
