Imbalances in the Chinese economy are its planned feature, resulting from the development model PRC chose. Due to China’s economic growth they became out-of-date and are not conducive to harmonious development domestically, at the same time being detrimental to China’s trade partners, including the US. They are deeply rooted in the economic and political system of the country, making potential reforms difficult for Chinese Communist Party. At the same, trade with China brings about negative economic, social and political effects for the US and continuation of the relationship without changes seems unacceptable for Americans. It has led to rising tensions and a trade war in the first half of 2025. Any solutions not addressing the root cause of the problem – planned imbalances in China’s economy – will not make the trade relationship beneficial for both sides again and will amount merely to pushing the problem further in time.
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