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US creates friction but needs cooperation

By He Weiwen | China Daily | Updated: 2013-02-26 08:06

Now he has begun his second term in office, one of US President Barack Obama's top priorities is creating jobs.

Stephen Roach, former chief economist at Morgan Stanley, has forecast a weak economic recovery for the United States in 2013 and described the US' high unemployment as "a dangerous signal" for relations between the US and China, as China will remain the scapegoat for job losses and factory closures in the US.

As the federal deficit is still running high and interest rates have dropped, there isn't much room for the Obama administration to maneuver. The only option seems to be expanding exports. US exports to China have grown by 59.2 percent over the past three years and are expected to grow by 12 percent in 2013. Hence, the US must focus on expanding sales to China. There will be continuous pressure on China's trade policies during Obama's second term, and US trade remedies on imports from China can also be expected to intensify.

US creates friction but needs cooperation

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