Economics
Deal or No Deal: Can China Shrink U.S. Deficit by $200 Billion?
- China may buy more Boeing airliners instead of Airbus: analyst
- IHS: Devil in the details of what would be deal of the century
This article is for subscribers only.
China’s reported offer to cut its annual trade surplus with the U.S. by $200 billion is no sure bet, and not just because state media and a Chinese official cast doubt over it on Friday. Economists have been running the numbers over any such pledge and say it would be a Herculean feat.
“There’s only one way to do this: divert imports from other countries,” said Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis SA in Hong Kong. “The European Union’s aircraft industry and semiconductor industries in Japan and Korea would suffer the most.”