China Trade Surplus
Posted by carvemeup on January 20, 2009
China had looked set to become the worlds biggest exporter but is facing lots of issues. China’s exporting had remained less than Germany by 13% in the ending months of 2008 and in December China was 3% lower than Germany but gained a raise of 10%. In the 4th quarter, China’s trade surplus rose to a record of $457 billion at the annual rate and in the same period as 2007 it was 50% less. China’s trade surplus fell down by 21% in the first few months of 2008 and luckily because of the global credit freeze the exports and imports quickly got raised. But unfortunately imports were also dragged down because of the oil that has been made cheaper and also commodity prices. China’s domestic demand is also something that needs to be worked on because there domestic demand is just too weak compared to the other countries. The construction is not going so well however consumer spending and investments working on manufacturing have been going very well. There have been lots of exports and job losses in the southern part of China which then have made speculation that there is a possibility that the government might bring down the value of yuan. There are some good things about the trade surplus in China and is that the total amount of bank loans have been raised by 15 and 14% last summer. China is also perhaps the only large economy where credit has been boosted in the recent months and if this is sustained it would help China advance domestic spending.
I think that this is causing a extremely big problem for China because the surplus is very important and is also part of the big mess in the world. I also think that China should have a better trade surplus because it would make exporting and importing way easier for China. What I think towards this subject is that if it where to be better I think that more people won’t have to be worried of losing a job.
I got my research from Economist.com but you can just go to:http://www.economist.com/finance/displaystory.cfm?story_id=12948617
Carvemeup
