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https://30a.hkust.edu.hk/our-impact/asias-economy-good-hands

The United States maintains it has the upper hand being the bigger "buyer" in the relationship, while the Chinese argue the goods of lower costs it exports are doing a big favor to US consumers, who would ultimately suffer if the costs of such goods continue to rise because of tariffs. While China is busy fighting the trade war externally, Beijing is concurrently trying to improve the efficiency of the economy to make it more robust and resilient in such difficult times. An often-overlooked feature of Sino-US trade imbalances is that although Beijing runs up huge trade surpluses in the manufacturing sector, it has large deficits in the service sector. These supply and demand mismatches suggest that there may exist inefficient misallocations in the Chinese economy. Economic efficiency is achieved when factors of production in an economy are distributed or allocated to most productive firms or sectors with the highest demand.