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Über dieses Buch

China’s trade surplus is an essential question, but there are many popular misconceptions about it, a fact that prompted the creation of this book, On China's Trade Surplus. It will help readers to understand the manner in which China’s foreign trade and China’s role in global trade have developed, and to how to benefit from trade with China. In this book, many hot topics are analyzed, such as: What promotes China’s trade surplus? Why doesn’t it have a trade deficit? What are the relations between trade frictions and China’s trade surplus, and how can trade frictions be reduced? What is the deeper meaning of the U.S. trade deficit with China?



Chapter 1. China’s Trade Surplus: A Whole View

Since the reform and opening up of China in 1978, China’s foreign trade volume began to increase year by year. Table 1.1 shows that, China’s total foreign trade volume saw an increase from 20.6 billion U.S. dollars in 1978 to 2.9728 trillion U.S. dollars in 2010. The data shows that China’s import trade volume has reached 1.3948 trillion U.S. dollars in 2010 which increased 128 folds compared with 10.9 billion U.S. dollars in 1978. According to the statistics, the increase rate of China’s export was more higher than that of import, and the export trade volume stood at 9.8 billion U.S. dollars in 1978, however, which soared to 1.5779 trillion U.S. dollars by 2010, an increase of 160 folds.
Tao Yuan

Chapter 2. What Promotes China’s Trade Surplus?

China’s export share in the total world export increased year by year, and the quality of export products is rising, which means that China’s exports have greatly improved in quantity and quality. China seizes the opportunity of economic globalization, and fully participates in global economic and industrial division of labor. Huge FDI, processing and assembling trade, labor advantage, scale advantage, technology advantage and industry advantage promote China’s exports in goods, and China’s competitive advantage in services trade will be stronger. The exchange rate of RMB is not the all-important reason for China’s trade surplus.
Tao Yuan

Chapter 3. Why China’s Trade Deficit Should Not Appear?

As a developing country, trade deficit should not appear in China. Both the stage of economic development and the level of social development of China tell us that trade deficit is not desirable for China. Export is indispensable for China’s current industrialization process and economic growth. Enormous labor pressure from the dual economy can’t be solved by the domestic demand alone. Moreover, as the “world factory” China is becoming the production base of many Chinese and foreign enterprises, so the products should be exported to all over the world. Besides, in the crisis era, when all the countries eager to stimulate economic growth by promoting exports, how China’s plan to promote economic growth can include the terms of restricting the export?
Tao Yuan

Chapter 4. To Reduce Trade Frictions

Because Chinese foreign trade scale grows rapidly and trade surplus of China continues, there are increasing trade frictions between China and its trade partners. Handling trade frictions with trade partners appropriately has a great influence on Chinese foreign trade and economic growth. It is unreasonable for china to restrain exports to pursue trade balance and reduce trade frictions. In order to reduce trade frictions with trade partners, we think China can take some measures as: encouraging imports instead of reducing exports, encouraging OFDI (outward foreign direct investment) of Chinese enterprises and exporting parts and components to host countries, asking for more imports of high-tech products from the U.S. and the European Union, and encouraging exports of high-tech products with intellectual property rights.
Tao Yuan

Chapter 5. The U.S. Trade Deficit with China: An Excuse

With development of economic globalization and China’s opening-up policy, the economic and trade relationship between China and the U.S., which are the largest developing country and the largest developed country respectively, have significant influence on the two countries themselves and the whole world. The U.S. is the largest trade partner and over-sea market of China, and China is the largest trade deficit source of the U.S. The U.S. continuously dispraises China’s exports and exchange rate of RMB, and tries to contribute them to the imbalance of global economy. In fact, the most important reasons of the U.S. trade deficit are dollar hegemony and economic structure of the U.S., which means that even when there are no China’s exports the U.S. trade deficit will not disappear. The U.S. trade deficit with China is an excuse, which the U.S. takes to suppress China’s economic advantage.
Tao Yuan


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