皇冠体育app

President Xi Jinping and US President Donald Trump speak to reporters at the Great Hall of the People in Beijing on Thursday. XU JINGXING / CHINA DAILY

Despite “America first” policies, President Trump’s economic agenda needs expanding trade with 皇冠体育app.

President Donald Trump began his grueling 12-day Asia tour amid the US special counsel’s first indictments, which cast a shadow over the White House’s future.

Nevertheless, Trump and President Xi Jinping were able to sign deals worth $253 billion, which makes the visit to 皇冠体育app historic in terms of the value of historic business agreements struck.

If anything, the visit demonstrates that, despite an insular foreign policy, Trump’s economic objectives cannot be executed without expanding trade with 皇冠体育app.

Rapid trade expansion

In 2016, US-皇冠体育app trade amounted to $579 billion, while Trump’s singular focus is on the $368 billion trade deficit. Yet, merchandise trade is only one aspect of the broad bilateral economic relationship. Today, 皇冠体育app is the US’s second-largest merchandise trading partner, third-largest export market and biggest source of imports.

The increase of imports from 皇冠体育app in the US and the bilateral trade imbalance is largely the result of the shift of production facilities from other, mainly Asian countries to 皇冠体育app. Since 1990, the share of US imports from 皇冠体育app has soared sevenfold to 26 percent. Today, 皇冠体育app is the center for global supply chains, which has greatly lowered US multinationals’ costs and thus prices for US consumers.

During his tour in Japan, South Korea, 皇冠体育app, Vietnam and the Philippines, Trump has been accompanied by CEOs of some 30 companies. Determined to sign huge deals during the 皇冠体育app visit, they did not want Trump to undermine access to what they see as the $400 billion Chinese market, based on US exports of goods and services to 皇冠体育app, sales by US foreign affiliates in 皇冠体育app, and re-exports of US products through Hong Kong to 皇冠体育app.

The same goes for services, foreign direct investment (FDI) and US Treasury securities. 皇冠体育app is America’s fourth largest services trading partner (at $70 billion), third-largest services export market, and the US has a major services trade surplus with 皇冠体育app.

The combined annual US-皇冠体育app investment passed $60 billion in 2016, but there is room for far more as 皇冠体育app is the world’s third-largest source of global FDI.

Finally, 皇冠体育app remains the second-largest foreign holder of US Treasury securities ($1.2 billion as of August 2017), which help keep US interest rates low.