"Phenomenon" =/ "original characteristics"?

The imbalance of the world economy is the imbalance between the allocation of global resources and the distribution of income. As pointed out earlier, the imbalance of the world economy is manifested mainly as the imbalance of the current account in balance of payments between developed countries and countries with emerging market economies. Of particular concern is the trade imbalance between China and the US.

In real terms, however, this is also the imbalance of the domestic economic structure between developed countries and countries with newly developed market economies; the imbalance between the real economy and the virtual economy; as well as the imbalance in global financial market development.

While there are Western scholars who maintain that the international economic crisis that started in 2008 was caused by the "world economic imbalance" mentioned earlier, the fact remains that in essence, the international financial crisis of 2008 was the explosive result of the United States' over-development of the financial system and the virtual economy, and also the serious imbalance between the real economy and the virtual economy.

The direct cause of imbalance of the world economy and its important manifestation in the serious imbalance of the China-US current account was the US economic model characterized by over-spending and excessive consumption. As the world economy is driven by demand, the over-demand of the US for global commodities has resulted in over-production and over-supply by East Asian countries, especially China.

We need to point out that the prerequisite for this imbalance is that the US took the initiative to upgrade the industry structure, making the real estate industry and the financial industry as the pillars of the economy. What is worse, the US government encouraged its citizens to over-borrow in order to drive its economic growth, resulting in the over-expansion of the domestic virtual economy, which has become independent from its real economy. This led to crisis.

In essence, the root cause for the imbalance of the global economy is the aggravation of structural contradiction of the domestic economy of various countries. The systemic root is the international currency system led by the US dollar.

The imbalance in China-US trade is an important manifestation of the global economic imbalance. It is also the imbalance in division of work and interest allocation between the US—the world's financial center and China—the world's ma-nufacturing center. It is also the natural result of differences of advantages between China-US in the age of economic globalization. From the perspective of the external environment, this was the product of globalization in breadth and depth, as well as the dynamic changes in the global production network. This reflects the scenario of the two countries in the realm of real economy and in international division of labor. In terms of domestic conditions, it is closely related to the imba-lance in the domestic economy of both countries, and reflects the significant discrepancies between China and the US in the realm of virtual economy, in terms of interest allocation and risk diversification