The US trade deficit surged by 7.9 percent from the prior month to $78.8 billion in July, the highest level in more than two years. Some political elites may still have an irrational fear about a deficit in foreign trade, even though much of their anxiety is unnecessary.

Faced with a persistent trade deficit, the US has been overburdened by excessive anxiety and has adopted protectionist measures in recent years targeting certain goods imported from certain countries, including China, to whittle down imports and trade deficits. But clearly, political elites in Washington have failed to do so, as the US trade deficit continues to widen. It's a bit ironic: it is not the trade deficit that poses a risk to the US economy, but trade protectionism actions.

A closer look into the US trade deficit shows that growth in July was led by increases in US imports. US exports in July were $266.6 billion, $1.3 billion more than in June, while imports were $345.4 billion - $7.1 billion more than the previous month, official data showed. Obviously, the growth in imports exceeded that of exports, resulting in a widening trade deficit.

Analysts attribute the pickup in US merchandise imports to multiple factors. First, some importers want to get ahead of a potential dockworkers' strike as reported by some media outlets by shipping cargo into the US earlier than usual. Second, retailers have begun stocking up as they bet on a strong holiday season. That's led to a surge in imports. 

The ports of Los Angeles and Long Beach, in California, which account for roughly one-third of all US container imports, had their third-strongest month ever in July, according to Bloomberg. Retailers seem to be optimistic about American consumers' spending, especially in the holiday shopping season.

This is good news for the US economy. Consumption spending makes up two-thirds of the US economy on average, so a pickup in US merchandise imports serves, to some extent, as both a consumer confidence indicator and a leading indicator that bodes well for economic growth.

More specifically for trade between China and the US, official US data showed the US deficit with China increased by $4.9 billion to $27.2 billion in July. Exports to China fell $1.0 billion while imports advanced $3.9 billion.

Some US enterprises have been stockpiling products, components and parts from China, because of uncertainty over US tariffs. According to Reuters, the Biden administration on August 30 delayed an announcement of its final determinations for tariff hikes on some Chinese-made products including semiconductors, saying it will make a decision public in the "coming days." 

It seems US importers are trying to seize the time window to build inventories. It adds to evidence that made-in-China products are irresistible and irreplaceable. A complete economic "decoupling" between the two countries is impossible.

In general, a pickup in US merchandise imports is not necessarily a bad thing if it sends a signal that domestic consumption is recovering. The resulting trade deficit should not cause undue concern. If US policymakers seek to whittle down trade deficits and imports through protectionist trade measures, they will fail to solve existing problems but create new ones. 

They will also disrupt normal trade and economic activities, and force American importers to reduce their losses through various means, including building inventories. Excessive anxiety toward trade deficits and Washington's response to the issue - trade protectionism - may lead to bigger problems for the US economy.

A trade deficit is an indicator that a nation consumes more than it produces. The focus should be on increasing production and exports, instead of cutting consumption and imports. The US needs to further expand exports, especially those of high-tech, high-value-added products.

China does not deliberately pursue a trade surplus and the current trade imbalance between the two countries is a result of normal market operation, which is guided by the bilateral economic structure, industry competitiveness and the international division of labor. 

Based on the development of the international division of labor, the US has an advantage in the production of high-tech goods, but unfortunately, the country has in recent years embarked on a tightening of its export control rules when it comes to cutting-edge technology items such as chips. 

In this sense, the most effective way for the US to reduce its trade deficit is to ease export curbs and promote exports, rather than restricting imports by adopting trade protectionist measures.

The chief executive of Dutch semiconductor equipment maker ASML, which has been caught up in Washington's technology crackdown on China, said reportedly that US-led restrictions on the company's exports to China are becoming more "economically motivated" over time, noting that "there will be more pushback."

The remark shows the rising pressure imposed by the US on its allies in order to restrict chip equipment export to China. The restrictions have negatively impacted the profits of ASML and other similar companies, experts said on Thursday. 

The experts said that the serious disruption of global chip chains by the US will backfire on Western companies as they may lose the Chinese market in the long run.
"I think to make the case that this is about national security is getting harder and harder," Christophe Fouquet, the chief executive of ASML, said on Wednesday at a Citi conference in New York, Reuters reported.

"Most probably there will be more pressure for restrictions, but I also think there will be more pushback and I think we have to hope we reach a certain equilibrium, because as a business what we all want is a bit of clarity, a bit of stability," Fouquet said.

US pressure on its allies to restrict China's access to semiconductor manufacturing tools has directly affected companies like ASML, especially since they may lose the important Chinese market in the long run, Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times on Thursday.

The market won't support the economic coercion by the US, while strong demand for mature chips has driven the rapid development of China's semiconductor sector lately, analysts said.

Fu Liang, a veteran industry expert, told the Global Times on Thursday that Western companies including ASML are unlikely to abandon the vast Chinese market, and they will walk a fine line of complying with US rules while still serving their Chinese clients.

To further enhance the continuous power supply capacity of the large power grid and improve the power supply reliability from 220 kV Huanggong Substation in Jinghe county, Bortala Mongolian Autonomous Prefecture to Jilintai Hydropower Station in Yili Kazak Autonomous Prefecture, on August 16, staff members of State Grid Bortala Power Supply Company went to 220 kV Huanglin Line I and Line II to carry out inspection of the operation status of mountainous area lines and maintenance of pole number plates.

220 kV Huanglin Line I and Line II were put into operation in 2003 and 2005 respectively. They are important connecting lines between the power grid of Bortala Prefecture and the main power grid of Xinjiang region. Due to the complex terrain and high altitude, inspection is difficult. The inspectors adopted the traditional foot patrol inspection method and conducted a one-by-one inspection of foundation burial, tower material deformation, foundation scouring, geological cracks, ground clearance, and the integrity of pole number plates.

As an important sign of transmission lines, the pole number plate is the "identity card" of power lines. It not only shows the name and direction of the line but also undertakes the role of safety warning. Due to long-term sunlight and long-term rain washing, the color marks and fonts on most tower identification signs are blurred. Some are not firmly installed and get lost, bringing a lot of inconvenience to inspection work. For the pole number plates found to be faded, damaged, or missing, operation and maintenance personnel immediately carry out maintenance and replacement. 

"After replacing the pole number plates, we will continue to investigate potential line hazards and defects to ensure zero hazards and zero defects in power supply. In the later stage, the 'manual + drone' method will be used to increase the intensity of line inspection." said Liang Wei, the person in charge of the transmission maintenance class of State Grid Bortala Power Supply Company.

It is understood that the company has strengthened the inspection of the operation status of mountainous area lines of 220 kV Huanglin Line and the maintenance of pole number plates. A total of 168 mountainous area towers have been inspected and 295 pole number plates have been maintained.

China’s Ministry of Commerce (MOFCOM) on Tuesday announced decisive countermeasures against Canada, including plans to initiate dispute settlement proceedings at WTO and launch anti-discriminatory probes, in response to Canada’s decision to impose hefty additional tariffs on Chinese products, including electric vehicles (EVs), steel and aluminum.

Chinese officials and experts stressed that the countermeasures are in line with Chinese laws and regulations as well as WTO rules, and slammed that Canada’s move in lockstep with the US and the EU is egregious in nature and violates WTO rules. 

Among the countermeasures is a decision to initiate dispute settlement proceedings against Canada’s additional tariff against Chinese EVs and other products at the WTO to safeguard the interests of its industries.

In addition, China will launch an anti-discriminatory investigation into Canada’s decision of imposing additional tariffs on Chinese EVs, steel and aluminum, based on the Article 7 and Article 36 of China’s Foreign Trade Law.

The Article 7 of China’s Foreign Trade Law clearly stipulates that in the event that any country or region applies prohibitive, restrictive or other like measures on a discriminatory basis against China in respect of trade, China may, as the case may be, take countermeasures against the country or region in question.

The Article 36 of China’s Foreign Trade Law states that the authority responsible for foreign trade under the State Council may give a notice to the public the activities in violation of this Law for impairing foreign trade order.

The MOFCOM said that it will take subsequent measures based on the actual situation. Industry insiders said that the anti-discriminatory probe is the first of its kind, and is in line with both Chinese laws and WTO rules.

Also on Tuesday, the MOFCOM announced that at the request of domestic industry, China will launch an anti-dumping investigation into canola seeds imported from Canada, in better responding to industry concerns and in order to safeguard the legitimate rights and interests of the domestic enterprises.

In 2023, Canada’s exports of canola seeds to China reached $3.47 billion, increasing 170 percent year-on-year, even as prices continuously dropped, according to the MOFCOM. Affected by Canada’s unfair competition, Chinese domestic industries continue to suffer losses, the ministry said.    

In addition, China also plans to launch an anti-dumping probe into relevant chemical products from Canada based on application filed by Chinese domestic industries, the MOFCOM announced.

“China’s attitude is very clear and it will take all necessary measures to defend the legitimate rights and interests of Chinese companies,” the MOFCOM said, while announcing the measures. 

Chinese President Xi Jinping met with Felix Tshisekedi, president of the Democratic Republic of the Congo (DRC), here on Monday.

The Chinese Gymnastics Association and the Chinese Table Tennis Association issued statements on Saturday in support of law enforcement agencies cracking down on illegal activities related to toxic fandom culture in sports.

On Thursday, the Ministry of Public Security released details about four typical cases of illegal activities associated with toxic fandom culture in sports.

In one case, the police investigated an incident where an individual named Yang was found to have publicly insulted a gymnast on social media, causing significant public outrage and administrative actions were taken.

The Chinese Gymnastics Association condemned the spread of baseless rumors, the incitation of public outrage, and all slanderous attacks against gymnasts, coaches, and staff.

"These actions not only have a profoundly negative impact on the work, lives, and families of those involved but also undermine the long-standing tradition of unity and patriotism that has defined the Chinese gymnastics team," the association stated.

"The development of gymnastics in China relies on the support and care of the entire society, and we are deeply grateful to the many gymnastics fans who have stood by the team through thick and thin."

On Saturday, the Chinese Table Tennis Association also expressed its support for the crackdown, condemning all forms of illegal activity.

The association noted that toxic fan culture has severely disrupted the normal training and competition schedules of the Chinese table tennis team, affecting the work, lives and families of athletes, coaches, and staff, as well as causing harmful social consequences.

Chen Meng, 30, who won the women's singles gold medal in table tennis at the Paris Olympics, was asked about the recent actions taken by law enforcement against toxic fan behavior in sports.

"Fans always want to see their favorite athletes win, but there will always be winners and losers in sports. I hope fans will be able to face that reality," Chen said. "If someone follows sports, they must be mentally prepared to accept victory and defeat. That's the essence of competitive sports."

"I also hope fans focus more on the athletes' fighting spirit on the field and their courage in the face of challenges," Chen added.