Abstract: Under conditions of financialization, finance capital develops relatively independently from the real economy of the United States. As a result, the United States has to rely heavily on external markets to buy consumer goods. The huge trade deficit of the United States stems from its own economic structure rather than external reasons. The trade deficit does not mean that the United States is in a disadvantageous position. From the perspective of the goods trade, service trade, and finance capital investment, the United States is in a position of absolute dominance with its service sector and profit from foreign investment. The launching of the USA–China trade war was a manifestation of Trump’s protectionism. It has failed. It is hoped that the Biden administration will demonstrate learning from this mistake.

Key words: financialization; protectionism; trade deficit; real economy

From: World Review of Political Economy 2020 11 (2)

Editor: Wang Yi