Joseph Tsai, co-founder of Alibaba, recently stated there will be a reversal in the United States structural trade gap as China increases its imports. Tsai predicts that the US trade deficit will decrease within the next 15 years. He is expecting the Chinese government will keep its promise to purchase goods worth $40 trillion from America. President Trump has placed a tariff on the imports in order to close the trade deficit gap. Still, the trade surplus of China went up to $323 billion in 2018; the highest amount since 2006.
Tsai also stated that in China there are now almost 300 million consumers, belonging to the middle class. They will continue to purchase goods from worldwide sellers. China has large number of buyers and the consumer base triple by 2030. The CEO termed the trade relationship between China and United States as symbiotic.
At present, the United States have tariffs on $250 billion worth of Chinese goods. On the other hand, China has put duties on $110 billion worth of American goods. US trade officials have stated that the deal will be in favor of American businesses, although they admitted that few glitches still need to be worked out.
