A common mistake made by famous economists is to confuse statistical measures such as “the trade deficit” or “CPI inflation” with the theoretical concept that economists use in their models. In terms of pure economic theory, the US sale of a LA house to a Chinese investor is just as much an “export” as the sale of a mobile home that is actually shipped overseas. But one is counted as an export and one is not.
If an investor in China buys a rental property here, then that is a simple asset swap, dollar for dollar and should have no imact on trade accounting.
If the Chinese investor bought a rental property and Grandma plus the kids moved in, then that is immigration, it might include Auntie Wu running an egg roll shop. Immigration has an impact on trade balance.
In the former, the owner remains in the currency and tax zone of the original trade partner, China, any investment in the US is a currency swap first. In the latter, productive capacity is moved to the trade partner and adopts the new currency, dropping the old.
In fact, goods trade matches money trade, ultimately. Trade balances seem to go on and on, but they don't. At some point the devaluation takes place.
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