Friday, March 8, 2013

Blog 6



In this article, Phillip Inman discusses China’s steadily growing reputation as the best in world trade. The war between China and the US for this title has finally come to an end; China reigns supreme. The combined total for imports and exports in Chinese goods reached close to $4trn within the past year. The US was recorded as just barely missing the same mark, coming in at 3.82tn for trade in goods. Inman does mention that the US’s economy is worth $15tn compared with China’s $7.3tn economy. Beijing is incredibly dependent on the rest of the world in order to generate jobs and income. The US’s economy is still twice the size and is more self-reliant. Being known as a leader in trade services, the US has the upper hand. However, the US’s deficit in goods was more than $700bn in comparison to China in 2012. That same year China’s trade surplus was totaled to $231.1bn. China is swiftly becoming the most important commercial partner in some countries. Jim O’Neill, head of asset management at Goldman Sachs is quoted as saying, “For so many countries around the world, China is becoming rapidly the most important bilateral trade partner," he said. "At this kind of pace by the end of the decade many European countries will be doing more individual trade with China than with bilateral partners in Europe." China remains the country to beat when it comes to trade. Given that it is the first time China edges past the US, this comes as a very pleasant surprise for them.


Taylor Massey
3:16PM
3/8/13

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