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The case study on the US-China trade war referred to the trade imbalance between US and China as one of the main reasons for the
The case study on the US-China trade war referred to the trade imbalance between US and China as one of the main reasons for the trade war. One of the main causes of this imbalance is the fact that: Group of answer choices US is a net lender to China while China is a net borrower from the U.S. China has a fixed exchange rate regime with the RMB pegged to the USD and a basket of currencies, and capital controls, whereas the US has a flexible exchange rate regime and free flows of capital. US has a low savings rate and high consumption rate, while China has a high savings rate and low consumption rate. US and China are competing in the technology sector and both are heavily investing in R&D
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