China's Trade Surplus

Topics: International trade, Export, Economics Pages: 3 (965 words) Published: November 15, 2008
The main macroeconomic issue for China:a rising trade surplus In the past years, the rapid growth of China’s trade surplus , which means that a country’s total amount of export is more than the amount it imports and thus having a positive balance of trade, was a significant contributor to the development of global economy. Nevertheless, recent years’ data shown that the rising trade surplus of China is no longer so attractive and desirable as it used to be. More and more countries including China are concerning about the side effects of rising trade surplus which become obvious. This essay will mainly focus on two aspects: one is the negative influences on global economy and China itself caused by rising trade surplus; the other is measures taken by the government under this circumstance to narrow the trade surplus. The excessive growth of China’s trade surplus plays an important role in the imbalance of the world’s economy. China’s surplus, together with America’s current-account deficit, has been the most notably factor which causes the widening imbalances the of global economy over the past decade (“Rebalancing act” ,2008 para2). According to the General Administration of Customs of China’s announcement, in the first four months of 2008,the European Unions, USA and Japan remained as China’s top three largest trade partners, with bilateral trade of US$129.86 billion, US$102.34 billion and US$84.69 billion (“April trade surplus” ,2008 para5). As China’s trade gap with other countries becomes larger and larger, the appearance of more and more trade frictions seem to be unavoidable. And the trade frictions might do harm to the environment of global economy, thus having a negative influence on the development of the world’s economy. “Reducing the external imbalance may become an important contribution from China to world growth,”the World Bank demonstrated (“China Trade Surplus” , 2007 para9). Apart from the world economy, the other victim of China’s...
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