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I. Introduction
The persistent imbalanced trade between China and the USA since 1993 has drawn a lot of attention from economists and officials; therefore much debate has been carried out on this issue including the cause and effect of this imbalanced trade, its costs and benefits, its sustainability and many other related aspects. It is a pity that little uniform recognition has been included on some key aspects about this issue up to the present. The current paper titled "Are the forces that cause China's trade surplus with the USA good?" written by Professor Jonathan E. Leightner also falls into the scope of this field. In his paper, Professor Leightner aims to conceptually discuss whether forces causing China's trade surplus with the USA is good. He points out that the fundamental causes of the US trade deficit with China are US excess consumption and Chinese excess savings. According to macroeconomic theory, excess savings result in net exports (like China), which means net exporters give up current consumption in order to gain claims against future production; while excess consumption results in trade deficits, which means net importers (like the USA) create obligations against future. Based on this basic argument, Professor [5] Jonathan (2010) argues that there are strong reasons to believe that China's trade surplus with the USA is not healthy for either China or the USA. For the reasons why China is trading current consumption for claims on future production which are not good, Professor [5] Jonathan (2010) gives the following explanation:
China's corporations save a lot, but those savings are driven by a system that is biased so strongly in their favor that they enjoy phenomenal profits and they are given no incentive to distribute those profits to their shareholders or to the public at large. Such a system is not good if each individual has inherent worth. Furthermore, Chinese households save 28 percent of their income, but that savings is driven by fear of a catastrophic health problem. A system that generates that much fear cannot be good.
The reasons why the USA is increasing its current consumption by giving obligations against future production which are not good, [5] Jonathan (2010) gives the explanation as followings:
Yet, the risk is still there for...