<abstract xmlns="http://www.w3.org/1999/xhtml">
<p>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 Chinas trade relation to the EU.</p>
</abstract>

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 Chinas trade relation to the EU.

China’s Trade Surplus – Implications for the World and for Europe

Intereconomics

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"China\u2019s Trade Surplus \u2013 Implications for the World and for Europe"}

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...

China’s Trade Surplus – Implications for the World and for Europe

Published Online: Apr 09, 2024

Page range: 104 - 111

DOI: https://doi.org/10.2478/ie-2024-0022

© 2024 Jürgen Matthes, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.