This website uses cookies to ensure you have the best experience. Learn more

China's Trade Surplus Essay

1979 words - 8 pages

Course Paper Evaluation for Undergraduate Students
|For teachers | | |
| |Academic Year : 2012–2013 Semester: 1st [√ ] 2nd[ ] |Course Type : |
| |Course Title __China’s foreign trade _ |Compulsory[ ] Optional[√] |
| |Submission Date __Dec 5, 2012_ ____ | |
| | ...view middle of the document...

|
|Students should demonstrate serious attitude toward academic research in the essay. |

[Abstract]: China's international payments imbalance is increasingly cause for concern. China's international balance of payments surplus in the long-term lead to excessive growth of China's foreign exchange reserves, making the hedge foreign exchange reserves caused by excessive proliferation of liquidity into the monetary policy is now one of the important tasks. Therefore, our analysis of the reasons for the current international balance of payments surplus and some serious image, can China's current macro-control policy choices have important significance.

Taiwan's formal accession to WTO, the total foreign trade has maintained rapid growth in exports of capital, the share of technology-intensive products has also increased year by year, to promote long-term stability of China's economic growth. However, the resulting problem is very serious; especially the trade imbalance is increasingly attracting attention. Total amount of China's foreign trade surplus in 2004 is only 31.98 billion U.S. dollars, representing an increase 25.6% over the same period last year; in 2005 China's foreign trade surplus totaled 101.88 billion U.S. dollars, 3.19 times in 2004; in 2006 China's foreign trade surplus totaled 177.47 billion U.S. dollars, but also compared to 2005 increased by 74%.

First, leading to the main reason for the international balance of payments surplus

Theoretical explanation of international industrial division of labor in one industry after the country's development to maturity will cause industry exodus. 70, 80 years from the twentieth century began, the United States and Europe, and Japan and other developed countries to shift labor-intensive industry, Asian countries, has created Asia's newly industrialized countries. After 20 years of development, labor-intensive industries began to shift our country, and China's abundant cheap labor combined. This is a substantial increase in China's exports causes. But as China's economic development, raising the level of income, imports did not increase along with the substantial increase in national income.

1. Insufficient effective demand
China's import growth rate of decrease is mainly due to insufficient effective demand. In recent years, China and major trading partners of the import growth rate there is a clear downward trend, such as 2005, China to the EU, U.S. imports increased by only 5% and 9.1%, far lower than the 28.8% and in 2004 31.9%. In 2006 because of China's imported aircraft, integrated circuits and other developed countries in Europe and the United States has a comparative advantage in the amount of goods to faster growth (compared to 2005 grew by 71.5% and 30.4%), so our country and the European Union, the United States import growth between the the rate...

Other Papers Like China's Trade Surplus

Essay Describes The Economic Causes And Effects Of The Current US Trade Defecit On The Lives Of Americans Short Term And Long Term(2004)

1203 words - 5 pages rates. This action brought down the value of the yen against the U.S. dollar and prevented the ordinary citizen from buying too much imported merchandise (Hamilton). These policies along with their restrictive trade barriers increased Japanese trade surpluses greatly. The US now has a new trade partner coming into the picture to further increase American imports, causing the trade deficit to balloon. China's trade surplus has now surpassed

China's Renminbi Essay

1602 words - 7 pages 8.28 per dollar. They have based their claim on the fact the undervalue of the Renminbi is a large trade surplus that China has with the US and the upsurge of the dollar asset reserves of China’s Central Bank and People’s Bank of China. Because of this surplus, China has $350 billion in foreign currency reserves and $122 billion in US government bonds. China is using the trade imbalance to become the largest creditor to the US government. China

Country Risk Analysis-China

3026 words - 13 pages China listed as number 12. Summary data can be accessed below."In terms of trade surplus, there are fluctuations all the time due to the business cycle. Not all cycles of goods and services in China fall into predictable patterns"China's trade surplus in March fell to $6.9 billion, well below forecasts and down sharply from February's $23.7 billion surplus, reports AP. It was not clear whether the drop in March was the result of government efforts

Economic and Monetary Policies

2213 words - 9 pages country must be privatizing the financial sector for improving the money supply and in reducing the imbalance. 2. China's economic policy and monetary policies are favorable to an extent that compliments international trade. Strong domestic demand in China is attracting more foreign investors (WTO, 2014, p. 9). The People's Bank of China continues to maintain managed floating rates that reduce the fluctuation in the exchange rate over the period

Geography Essay

1753 words - 8 pages . All these civilizations that survived for hundreds of years relied on their geography to provide the resources necessary to keep them alive. The geography also provided challenges that they all had to face. The ancient river valley civilizations used their rivers to generate a food surplus, but the rivers' flooding sometimes harmed them. Ancient Greece took advantage of being near a network of seas to establish trade and build a large navy, but

The Global Economy

1539 words - 7 pages with the majority of its resources being imported from overseas. A major turning point for China was when it joined the World Trade Organisation in 2001 as a response to the globalisation trend, and reduced its trade barriers, thus leaving the gates open for foreign investors and international trade. Recently China’s overall trade surplus in merchandise has averaged around 2.5% of GDP , this is a massive figure for exports in any country. The

Briefly Outline And Describe The World System Theory. In Your Opinion Is This Globalisation?

2047 words - 9 pages , we must assume that these countries were producing surplus goods, indicating that their labour and work force was quite advanced for such an early century. Furthering this belief is the ways in which trade was conducted; rarely did two or more countries speak the same language, set the same values for goods, or use the same currency, and yet exchange prices were set and communication was obviously healthy, or the trade economy would not have

Foreign Subsidiary Investment Plan Case: Multinational Capital Budgeting China & Australia

5529 words - 23 pages around 8.5% of GDP. Furthermore, the global recovery is putting upward pressure on prices for Australia's commodity exports, causing a substantial surplus in the current account balance due to the increase in trade. Since the 1980s, Australia has undertaken significant structural reforms transforming itself from a highly isolated, protected and regulated market-place to an open, internationally competitive and export-oriented economy

Causes of New Imperialism. Political or Economics?

1089 words - 5 pages – and evidence of British military weakness, coinciding with a decline in naval strength relative to other maritime states, suggested to Bismarck that Britain's ill-defined claims to influence over sub-saharan Africa were vulnerable to concerted pressure. In China, Britain was unable to prevent an informal partition in terms of spheres of influence in the 1890s. Though she controlled about 70 per cent of China's external trade, and had taken

Bill Clinton

2114 words - 9 pages in oil prices, but Republicans charged that this was a political ploy designed to aid Vice Pres. Al Gore's chances in the 2000 presidential race. President Clinton and the GOP-led Congress did come together on one important issue: the granting of permanent normal trade relations with China. The initiative had strong bipartisan support, despite a campaign by human rights advocates to quell the effort because of China's poor rights record

Intro to Business (Retestch1-6)

3541 words - 15 pages supplied is less than quantity demanded, or the quantity demanded will exceed the quantity supplied, which is similar), a signal is sent to sellers to increase the price. So preferred answer for this question is the quantity demanded will exceed the quantity supplied. 51. D. This is preferred answer because when the market price of good is above its the equilibrium value, a surplus will exist in the market. The quantity demanded will increase

Related Essays

China's Trade Surplus Essay

757 words - 4 pages , but from 1990s, the national trade deficits turned to trade surplus, which reached to 155 billion dollars until 2010. High GDP growth was achieved primarily through exports and large investment expenditure. All of these indications were what people would like to see because trade surplus is the sign of fast-growing economy. We can prove that why it is preferable for people from the angle of short-run. Based on the formula of gross domestic

What Motivates Customers To Buy Products

1539 words - 7 pages related fields, as well as service outsourcing, have been growing rapidly.  From 2001 to 2010 China's total services trade value (excluding government services) The reasons for china’s trade surplus is Chinese household’s high propensity to savings. China’s tarrif rate is very low and after entry in WTO it went down further. China has opened wider to the outside world, attracted and utilized foreign investment, developed advanced technology

International Business Essay

1415 words - 6 pages %. Investment sentiment is the weakest indicator, while the production level in China's industries has dropped which left surplus production capacity in the industries. Although China growth is slowing down, the probability that it will collapse suddenly is small. 2.0 Discussion The biggest problem in China is that the massive debt explosion is now threatening its entire economy, leading to a reduction in capital investment. There has been a

Currency War And It's Influence For Indonesia

1329 words - 6 pages should. China's rapid economic growth has caused China's trade surplus against its trading partner countries to increase. In the second quarter of 2010, China's economy grew 10.3 percent, from 11.9 percent growth in the previous quarter. However, on the contrary, many Chinese trading partners are experiencing widening trade deficit, including the U.S. In 2009, the U.S. trade balance deficit with China has more than 220 billion U.S. dollars. This