WASHINGTON – America’s massive trade deficit with China is estimated tohave resulted in about two million job losses in the US, the White Househas said, defending President Donald Trump’s decision to initiate strongactions against China’s “unfair” trade practices.

Trump imposed USD 60 billion of tariffs on Chinese imports to punish thecountry for its “unfair” seizure of American intellectual property, a movethat could escalate the already tense trade relations between the world’stwo biggest economies.

Trump directed the US trade representative to level tariffs on about USD 60billion worth of Chinese imports after a seven-month investigation into theintellectual property theft, which has been a longstanding point ofcontention in US-China trade relations. China also announced retaliatorymeasures against the US.

A senior administration official told reporters: “By some calculations,every billion dollar of trade deficit that arises from market-distortedpolicies, costs us about 6,000 jobs.

A very conservative calculation, by some estimates, is that trade deficitresults in about two million more jobs in China and two million less here.This is a serious problem that the US side is keenly aware of”.

China’s “unfair” trade practices has resulted in a goods trade deficit ofUSD 370 billion, the official said. The Trump administration said that itis for China to decide what course it wants to take. “The point here isthat China will have a choice as to how to respond, and they have benefitedfar more from this relationship than we have. We will certainly take thatinto account,” the official said.

The typical American corporation that wants to go to China and sell itsgoods into the Chinese market is on the horns of a dilemma. Responding toquestions, the official said the concerns with Chinese economic practicesare widespread throughout the United States and around the world.

“We have heard from many of our trading partners that they share many ofthese concerns,” the official said. Another administration official saidChina benefits far more from the US-China trade relationship than the USdoes.

Since 2001, when China joined the World Trade Organisation, its economy hasgrown from USD 1 trillion of GDP to USD 12 trillion; roughly an 800 percent growth rate. “During the same period of time, the American economysputtered.

It went from an annual growth rate of about 3.5 per cent between 1947 and2000, down to around two per cent, which everybody wanted to say was thenew normal for America. But the contrast between China’s growth and itsunfair trade practices, and what had happened to the US in terms of growthand wage growth, is quite startling,” the official said.

Later State Department Spokesperson Heather Nauert said Trump has been veryclear from the first day on the campaign trail, longstanding concerns thathe has and administration-wide people have, with China’s “unfair” tradepractices. “It’s natural for us to have to address things that we don’tagree on. One of them is certainly trade. The President has fought veryhard for advancing opportunities, economic opportunities for Americanbusinesses, but also the American people,” she said.