Question

choose one topic from Bloomberg business website and summarized it.

Answer 1

The topic selected form Bloomberg is:

“US earns more in china than trade numbers reveal”

The companies in America are doing well in china than in US. The latest trade deficit suggests this. This is considered to be a weakness for US.

The deficit is due to difference in what US imports and exports to china. This was $375 billion last year. This shows that the relationship between these two countries is out of whack.

However the trade deficit doesn’t include the business done by American companies in china. The figures shown in deficit don’t include many businesses because the goods never cross the border. The output that is produced by the American firms in china is sold in china. Deustche bank’s estimate is just $22 billion.

Everyone is aware that trump has proposed tariffs worth $50 billion on Chinese imports. He also ordered his officials for further $100 billion. US exports to china last year were worth $130 billion last year. If china retaliates, then it will hit out of US products to run with tariffs. Hence all the Chinese subsidiaries of American companies become a target.

To conclude, corporate of America is bigger in china than the trade deficit. Hence trump should consider all this and understand that America has lot of things to lose.