Question

In: Economics

Why international trade is important for China? (consider balance of trade, international trade-to GDP ratio). What...

  1. Why international trade is important for China? (consider balance of trade, international trade-to GDP ratio).
  2. What products does China export and import? Who are major international trade partners? Consider exports and imports separately.
  3. Is there a concerted effort from the government of China to promote exports to stimulate the economy? Are there any trading policies favorable for American investors?

Solutions

Expert Solution

Trade has been an important part of Chinese economy and it has a significant tool used for economic modernization.China has a positive balance of trade with its trading partners since 1990. China's trade to GDP ratio for 2019 was 35.68% , a 1.78 % decline from 2018 ,it was around 37.46 %. In 2019. China's trade surplus was nearly $421.9 billion dollars b. Most of China's import consists of machinery, apparatus like semiconductors,computers and office machines ,chemicals and fuels. The main import partners of China are Japan, Taiwan, South Korea, Australia ,Countries of European Union and United States. China's export consists of manufacture goods,electrical equipment, electronic machinery, clothing ,textiles and footwear. Agricultural products are also an important part of Chinese exports c. Yes, there is concerted effort from government to promote exports of China. Chinese government has set a strategy of targeting $1 trillion worth f trade in the services by the year 2020.It would provide total policy support o raise thee export value of services relative to goods . Yes , there are favourable trading policies for American investors in China. Americans are investing billions in corporate China. American money is flowing into China stocks and bonds


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