Protectionist policies clearly do not benefit any economy, and it is likely that a brake will be put on excessive protectionist moves at some point. However, if we regard this problem of trade friction as part of the broader issue of determining the future relationship between the United States and China, it is undeniable that resolving the trade friction may take time.
On the face of it, our own national savings performance has been poor over several decades, and that has been reflected in persistent balance of payments deficits over more than a quarter of a century – and very high private sector levels of indebtedness to foreign savers as a result.