Why China’s Trade Deficit Should Not Appear?

Tao Yuan ()
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Tao Yuan: Nankai University

Chapter Chapter 3 in On China's Trade Surplus, 2014, pp 43-57 from Springer

Abstract: Abstract As a developing country, trade deficit should not appear in China. Both the stage of economic development and the level of social development of China tell us that trade deficit is not desirable for China. Export is indispensable for China’s current industrialization process and economic growth. Enormous labor pressure from the dual economy can’t be solved by the domestic demand alone. Moreover, as the “world factory” China is becoming the production base of many Chinese and foreign enterprises, so the products should be exported to all over the world. Besides, in the crisis era, when all the countries eager to stimulate economic growth by promoting exports, how China’s plan to promote economic growth can include the terms of restricting the export?

Keywords: Foreign Trade; Domestic Demand; Trade Deficit; Electrical Appliance; Export Growth (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:spbrcp:978-3-642-38925-2_3

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DOI: 10.1007/978-3-642-38925-2_3

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