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Many people, even economists, are confused about the implications of trade data. According to the president of the Shanghai University of Finance and Economics, "Foreign trade data best reflect the overall economic situation, such as the negative...
chinadaily.com.cn
Many people, even economists, are confused about the implications of trade data. According to the president of the Shanghai University of Finance and Economics, "Foreign trade data best reflect the overall economic situation, such as the negative...
chinadaily.com.cn
2/6
growth in imports over the past few months, which indicates that the nation is facing insufficient domestic demand. China's exports, however, continued to grow, even maintaining a double-digit growth rate, resulting in a sharp rise in the trade surplus."
growth in imports over the past few months, which indicates that the nation is facing insufficient domestic demand. China's exports, however, continued to grow, even maintaining a double-digit growth rate, resulting in a sharp rise in the trade surplus."
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And yet he concludes: "Overall, though there have been worries and anxieties over China's foreign trade, the overall trade situation during the past three years suggests things are still in a good shape."
And yet he concludes: "Overall, though there have been worries and anxieties over China's foreign trade, the overall trade situation during the past three years suggests things are still in a good shape."
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But in fact China's rising exports and the surge in its trade surplus are indications that while production is sputtering along, consumption has been unable to keep up, the result of which is that Chinese exports must rise and its trade surplus surge.
But in fact China's rising exports and the surge in its trade surplus are indications that while production is sputtering along, consumption has been unable to keep up, the result of which is that Chinese exports must rise and its trade surplus surge.
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There is an inveterate mercantilist view that any increase in exports and in the trade surplus is a good thing. But a surge in exports is only a sign of good economic health if it is driven by rising productivity and is accompanied by a surge in imports.
There is an inveterate mercantilist view that any increase in exports and in the trade surplus is a good thing. But a surge in exports is only a sign of good economic health if it is driven by rising productivity and is accompanied by a surge in imports.
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When it is driven by a rise in supply-side subsidies for manufacturers and accompanied by weaker imports, it is a sign of domestic imbalances. When China's share of global exports rises while imports lag, it mainly means that China is externalizing weak domestic demand.
When it is driven by a rise in supply-side subsidies for manufacturers and accompanied by weaker imports, it is a sign of domestic imbalances. When China's share of global exports rises while imports lag, it mainly means that China is externalizing weak domestic demand.
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