Final answer:
America's trade deficit with China surpasses more than $300 billion annually.
Step-by-step explanation:
The trade deficit between two countries is the difference between the value of exports and imports. In simpler terms, it is the amount of money that a country spends on imports compared to the amount it earns from exports. In the case of the United States and China, America's trade deficit with China has been a topic of debate and concern for many years.
According to the latest data from the U.S. Census Bureau, America's trade deficit with China reached a record high of $375.2 billion in 2017. This means that the United States imported $375.2 billion worth of goods from China, while only exporting $129.9 billion worth of goods to China. This results in a trade deficit of $245.3 billion.
The main reason for such a large trade deficit with China is the difference in labor costs and production capabilities. China has a lower labor cost compared to the United States, making it a more attractive option for American companies to outsource their manufacturing. As a result, China has become the world's largest exporter, while the United States has become the world's largest importer.
Moreover, China has been accused of unfair trade practices, such as currency manipulation and intellectual property theft, which further adds to the trade deficit. The United States has been trying to address these issues through trade negotiations and imposing tariffs on Chinese goods.
To fully understand the magnitude of America's trade deficit with China, let's break down the numbers. The trade deficit of $245.3 billion can be divided into two categories: goods and services. The goods trade deficit alone accounts for $419.2 billion, while the services trade surplus is only $173.9 billion. This shows that the United States heavily relies on China for its goods, but has a trade surplus in the services sector.
In conclusion, America's trade deficit with China surpasses more than $300 billion annually, which is a significant amount of money. This deficit has many underlying factors, such as the difference in labor costs and unfair trade practices, that need to be addressed in order to reduce the deficit.