China’s merchandise trade surplus has reached an all-time high and is likely to rise further. A key driver appears to be a policy push to further bolster Chinese domestic manufacturing production, implying the danger of significant overcapacities.
China’s Trade Surplus – Implications for the World and for Europe
German Economic Institute (IW)
China’s merchandise trade surplus has reached an all-time high and is likely to rise further. A key driver appears to be a policy push to further bolster Chinese domestic manufacturing production, implying the danger of significant overcapacities.
China’s imbalance between domestic production and consumption implies that China draws on the domestic demand of other countries to sustain its economic growth. It does so at the potential expense of production and employment of those trading partners with high trade deficits with China. As this constellation could be the source of growing trade conflicts, this article analyses China’s growing trade surplus in several dimensions with a focus on China's trade relation to the EU.
China’s Trade Surplus – Implications for the World and for Europe
German Economic Institute (IW)
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