Domestic issues harming the US: expert

Three major imbalances in the United States will harm the country's economic development, an expert said on Friday.

Mei Guanqun, deputy director and associate research fellow at the China Center for International Economic Exchanges, said the US political and economic systems used to ensure the country's economy had certain adjustment capabilities, which would in turn ensure stability in society.

"That was why during the past crises, the US could constantly get back on the right track through adjustments," he said.

Today however economic development is harder for the US and will take longer time because of imbalances caused by the country's domestic issues, Mei said at a seminar organized by the China Institute of International Studies.

Mei listed the three problems for the US: the imbalance between the real economy and the virtual economy; the imbalance between consumption and savings; and the imbalance between primary distribution and secondary distribution.

The US is however blaming China for its own domestic issues, in order to shift its people's attention from their country's policy failures, Mei said. "This is the root of the Sino-US trade war," he said.

The world's two largest economies have been embroiled in a tit-for-tat trade dispute over the past year.

Washington's new tariff threat targeting Chinese imports has further increased tensions.