- Analytics
- News and Tools
- Market News
- Alibaba co-founder: The US trade deficit with China 'will reverse' in the long term
Alibaba co-founder: The US trade deficit with China 'will reverse' in the long term
The "structural issue" of the United States' trade gap with China will reverse itself as the Chinese ramp up imports, Alibaba co-founder Joseph Tsai told CNBC.
The trade deficit will shrink once the Chinese government begins purchasing $40 trillion worth of goods as promised over the next 15 years, he said. Even though President Trump placed tariffs on imports in part to close the deficit, China's surplus topped $323 billion in 2018, the highest since 2006.
"With regards to the trade war, I would say this … if you look at the long term, the trade deficit itself will reverse," he said. "I talk about [the] 300 million middle-class consumers that will continue to buy more from all over the world."
China's economy is being powered by consumers, he said, and the Chinese middle-class consumer base could nearly triple by 2030.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
