Time US adjusted to new global reality

Trade frictions are straining relations between China and the United States. At the end of the day, however, relations are generally on track and constructive. But the world is changing and Washington's ability to adjust appropriately is in question.

In 2017, the US exported about $130 billion of goods to China while China exported about $505 billion of goods to the US. Thus, the balance of trade was negative for the US by $375 billion.

Although these numbers may appear stark, US consumers benefit from the lower cost of goods which also cuts against inflation. And the US benefits from China recycling the dollars from trade gains into investments in US Treasury debt instruments.