East Asian industry transfer, FDI productivity spillovers and US–China trade imbalance

In recent years, the US–China trade imbalance ¹ has become an increasingly sensitive issue attracting the attention of not only the United States and China, but also many other trading giants, such as the European Union and Japan. The issue has become highly politicised, and the two countries have encountered great difficulties in coping with it. Trade disagreements seem to have become a normal part of relations between China and the USA. How the two countries deal with the issue matters not only for themselves, but also for the well-being of the entire international community.