Trade surplus exceeds 112.53 billion US dollars, good news or bad news?

Trade surplus exceeds 112.53 billion US dollars, good news or bad news?
Jul 12, 2007 01:41
LEOPOLD219 Points: Join Date: Feb 7, 2007 Status: offline	In the first half of this year, China's trade surplus exceeds 112.53 billion US dollars. Compared with the same period in the last year, it has increased about 83.1%. In June, it reached 26.91 billion US dollars and made a new record. What we should pay attention to is that trade surplus are made when the government adopted a series of measures to limit the export of some products and adjust the sturcuture of export. To decrease the trade surplus has become a big concern in adjusting economy sturcuture. If it not controled, serious problems may appear, such as the excess of liquidity and pollution. Some of the exports cost much energy and environmental problems. Trade surplus is good or bad? Any comments or opinions?

Jul 12, 2007 01:41

LEOPOLD219
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Join Date: Feb 7, 2007
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In the first half of this year, China's trade surplus exceeds 112.53 billion US dollars. Compared with the same period in the last year, it has increased about 83.1%. In June, it reached 26.91 billion US dollars and made a new record. What we should pay attention to is that trade surplus are made when the government adopted a series of measures to limit the export of some products and adjust the sturcuture of export.

To decrease the trade surplus has become a big concern in adjusting economy sturcuture. If it not controled, serious problems may appear, such as the excess of liquidity and pollution. Some of the exports cost much energy and environmental problems.

Trade surplus is good or bad? Any comments or opinions?

Jul 12, 2007 01:58

FRANKENSTEIN
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Join Date: Nov 29, 2004
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Well, it shows that China's economy is developing rapidly. In this aspect, it is good. But too much trade surplus also can cause problems. Just as you said, the excess of liquidity and pollution are what China has paid for.

How to solve the problem? In nature, China should expand its demestic demond, especially the consumer demand. Also economic growth pattern needs to be changed. We can not just rely on the export. Meanwhile, the government should encourage the import and make a balance between them.

Jul 13, 2007 23:22

GRYOKAN
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Join Date: Oct 21, 2006
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Generally it is good to have a trade surplus - of cos. And China has a history of trade surplus with most of her trading partners.
However, humans are jealous - they cannot accept the idea that they need the other more.
When China has a surplus, it means that her trading partners have a deficit. Over long term, the trading partners will not be happy and will think of ways to reverse or balance the position with China. This was 1 of the reasons for opium trading by the English that led to the Opium War.
Fact is - China has almost everything that most other countries have and do not need to import. Other countries crave for Chinese products, unfortunately. So we will see the other countries compelling China to buy more of their products, even if China doesn't really need them. Or compel China to price their products higher so that they will not be as competitive.

Jul 18, 2007 00:30

APAULT
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Join Date: Mar 11, 2006
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No way is a trade surplus in itself a problem for China. Of course it may upset the Americans...but too bad!! Yes it is at the expense of pollution, but all production has a negative effect on the environment. To its credit, the Chinese governmeny has started to close down inefficient and highly polluting steel producers for this very reason.

Of course the Americans are probably correct that the low rate of the RMB is a form of subsidy, but as I have said before, they have so many subsidies and trafe restrictionsthemselves, they are 'the pot calling the kettle black' (they are just as bad and are hypocritical in their complaints).

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