China’s Trade Surplus – Implications for the World and for Europe

Matthes Jürgen
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Matthes Jürgen: German Economic Institute (IW), Cologne, Germany

Intereconomics: Review of European Economic Policy, 2024, vol. 59, issue 2, 104-111

Abstract: China’s merchandise trade surplus has reached an all-time high and is likely to rise further. A key driver appears to be a policy push to further bolster Chinese domestic manufacturing production, implying the danger of significant overcapacities. China’s imbalance between domestic production and consumption implies that China draws on the domestic demand of other countries to sustain its economic growth. It does so at the potential expense of production and employment of those trading partners with high trade deficits with China. As this constellation could be the source of growing trade conflicts, this article analyses China’s growing trade surplus in several dimensions with a focus on Chinas trade relation to the EU.

JEL-codes: F14 P4 Y1 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:intere:v:59:y:2024:i:2:p:104-111:n:11

DOI: 10.2478/ie-2024-0022

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