China's trade surplus is growing!

While it is no mystery that China has experienced a large trade surplus, according to a surplus article that I read, they are at a level of trade surplus approximately 5 billion dollars higher than they were last year, at this same time. Although some of the recent hikes in China's trade surplus can be attributed an increase in the purchase of products for the upcoming holiday season, some believe it has to do with China's currency situation. Whatever the reason, it is becoming evident that China's level of trade surplus is longer a rising trend, but a seemingly new way of doing business. From an economic standpoint, it must make sense for companies to import goods from China, otherwise, China wouldn't be at such a trade surplus. While it is obviously advantageous from a financial standpoint for companies to purchase products from China, some worry that certain jobs, and demand for U.S. products, etc. could be wiped away. So, despite, the pros that are associated with having a trading relationship with China, it is also important to consider what other possible effects could come to pass as a result.

1 comment:

Dr. Tufte said...

-1 on Morgan's post for spelling errors.

Otherwise, this post seems uncontroversial.