China’s trade surplus is a matter of concern

China, according to report has not made much progress on rebalancing its economy as its export dependency is still high and trade surplus is higher as expected. If we see the export data china’s export grew to nearly 23% from the previous year to a trade figure of about 136 billion dollar while the import is about 26% higher to about 109 billion dollar. Export growth between these periods is matter of concern as it is a concern from the G20 nations.
 
Though we think that trade surplus is positive for a country but out general understanding is much lower than what economists say. As per the economists’ china’s export dependency is not in anyway good though import is also growing but not in comparison to export.
 
Positive balance of trade is good for a country but we have to take into account all the factors while calculating the overall growth of a country, In case of china there is still an uncertainty in the real estate sector which has a ballooned to a dramatic way while the import of crude, copper and soybeans has fallen to a marginal extent.
 

From international front china is under pressure to reform its currency to cut the disparity in the balance of trade. 



By Dipti Prasad Padhi

By : | Category : Business and Economy| Date : November 11,2011

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