gime of intellectual property rights protection. Again, this is what foreign negotiat
ors are seeking, but also is important for China’s own economy as it transitions to being a technology leader.
Trade agreements can affect the types of goods being traded and they can redirect trade toward one c
ountry, away from others. They cannot directly affect any country’s worldwide current account bal
ance. A country that saves less than it invests will have to borrow foreign funds to import foreign goods to make up that difference.
There are two ways to reduce the US trade deficit. A serious recession would reduce investme
nt, but nobody advocates that as a strategy. The only other path is to change the US financial and gov
ernment system to encourage increased savings. China has almost nothing to do with it.