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Thread: China now largest trading nation in the world

  1. #1
    Politics.ie Member seabhcan's Avatar
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    Default China now largest trading nation in the world

    China trade now bigger than US - Telegraph

    China is now the largest trading nation on earth, overtaking the US in 2012. China's combines imports and exports total $3.87 trillion, marginally more than the US figure of $3.82 trillion.

    This is an interesting moment. The US has held the number 1 spot since at least WW2, probably before.

    Also, interestingly, "China had a full-year trade surplus of $231.1bn with the US posting a total 2012 trade deficit of $727.9bn." Basically, the US imports 25% more than they export. 727 billion gets sucked out of the country each and every year - 7% of GDP.

    China's internal market is still a lot smaller than the US, but it is growing at a fair clip. "China's auto sales jumped 46.4pc compared with January 2012 to a record monthly high of 2.03m units"

    This data basically ends the worry that China is slowing down. For better or worse, the Chinese government does seem to have printed and inflated itself out of trouble.

    This news will put pressure on the Dollar and will push gradually global trade away from being so dollar dominated. A nation which has a declining share of trade, has 25% trade deficit can't continue forever to set the rules.

  2. #2
    Ramps
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    Quote Originally Posted by seabhcan View Post
    China trade now bigger than US - Telegraph

    China is now the largest trading nation on earth, overtaking the US in 2012. China's combines imports and exports total $3.87 trillion, marginally more than the US figure of $3.82 trillion.

    This is an interesting moment. The US has held the number 1 spot since at least WW2, probably before.

    Also, interestingly, "China had a full-year trade surplus of $231.1bn with the US posting a total 2012 trade deficit of $727.9bn." Basically, the US imports 25% more than they export. 727 billion gets sucked out of the country each and every year - 7% of GDP.

    China's internal market is still a lot smaller than the US, but it is growing at a fair clip. "China's auto sales jumped 46.4pc compared with January 2012 to a record monthly high of 2.03m units"

    This data basically ends the worry that China is slowing down. For better or worse, the Chinese government does seem to have printed and inflated itself out of trouble.

    This news will put pressure on the Dollar and will push gradually global trade away from being so dollar dominated. A nation which has a declining share of trade, has 25% trade deficit can't continue forever to set the rules.
    You seem to be under the impression that a trade deficit is a bad thing....

  3. #3
    MrFunkyBoogaloo
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    Quote Originally Posted by seabhcan View Post
    China trade now bigger than US - Telegraph

    China is now the largest trading nation on earth, overtaking the US in 2012. China's combines imports and exports total $3.87 trillion, marginally more than the US figure of $3.82 trillion.

    This is an interesting moment. The US has held the number 1 spot since at least WW2, probably before.

    Also, interestingly, "China had a full-year trade surplus of $231.1bn with the US posting a total 2012 trade deficit of $727.9bn." Basically, the US imports 25% more than they export. 727 billion gets sucked out of the country each and every year - 7% of GDP.

    China's internal market is still a lot smaller than the US, but it is growing at a fair clip. "China's auto sales jumped 46.4pc compared with January 2012 to a record monthly high of 2.03m units"

    This data basically ends the worry that China is slowing down. For better or worse, the Chinese government does seem to have printed and inflated itself out of trouble.

    This news will put pressure on the Dollar and will push gradually global trade away from being so dollar dominated. A nation which has a declining share of trade, has 25% trade deficit can't continue forever to set the rules.
    Was reading this the other night and yes.. before anyone starts... I know it's ZeroHero - Get over it!

    "China Accounts For Nearly Half Of World's New Money Supply" | Zero Hedge

    Also this from today: Guest Post: China Surpasses U.S. As Number One Global Trading Power | Zero Hedge

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    Politics.ie Member Dan_Murphy's Avatar
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    Quote Originally Posted by Ramps View Post
    You seem to be under the impression that a trade deficit is a bad thing....
    Isn't it?

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    Politics.ie Member stopdoingstuff's Avatar
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    Quote Originally Posted by Dan_Murphy View Post
    Isn't it?
    Not really. It means that poor consumers can buy stuff for cheaper, and all those dollars must eventually make their way back to the USA at some point because they are only useful if they can be traded for something priced in dollars (consumer goods or capital investments). In a sense, this represents a wealth transfer from poor Chinese workers to relatively richer American consumers, since it is the policy of the Chinese government to keep their exports cheap. The real problem is not the deficit itself but that the US economy is not really competitive.
    Faoi mhóid bheith saor

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    Politics.ie Member stopdoingstuff's Avatar
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    Quote Originally Posted by MrFunkyBoogaloo View Post
    Was reading this the other night and yes.. before anyone starts... I know it's ZeroHero - Get over it!

    "China Accounts For Nearly Half Of World's New Money Supply" | Zero Hedge

    Also this from today: Guest Post: China Surpasses U.S. As Number One Global Trading Power | Zero Hedge
    Zero Hedge is a fine website as long as it is treated for what it is- part news, part analysis, part speculation. The last part is what both gives it its edge and its weakness- people outline speculative investment hypotheses, which others then hold up to standards of evidence that one should only properly apply to hard news. The we get comments like," that guy said Stock X would soar but it didn't, so if we's have listened to him we would be down 30%". Except of course that only an idiot would be down 30%, because only an idiot would trade without a stop loss to begin with, because most traders are wrong most of the time but seek to limit that by cutting losses early but letting profits run.

    As for Chinese money supply doubling- yes, it will lead to disaster.
    Faoi mhóid bheith saor

  7. #7
    Politics.ie Member stopdoingstuff's Avatar
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    Quote Originally Posted by seabhcan View Post
    China trade now bigger than US - Telegraph

    China is now the largest trading nation on earth, overtaking the US in 2012. China's combines imports and exports total $3.87 trillion, marginally more than the US figure of $3.82 trillion.

    This is an interesting moment. The US has held the number 1 spot since at least WW2, probably before.

    Also, interestingly, "China had a full-year trade surplus of $231.1bn with the US posting a total 2012 trade deficit of $727.9bn." Basically, the US imports 25% more than they export. 727 billion gets sucked out of the country each and every year - 7% of GDP.

    China's internal market is still a lot smaller than the US, but it is growing at a fair clip. "China's auto sales jumped 46.4pc compared with January 2012 to a record monthly high of 2.03m units"

    This data basically ends the worry that China is slowing down. For better or worse, the Chinese government does seem to have printed and inflated itself out of trouble.

    This news will put pressure on the Dollar and will push gradually global trade away from being so dollar dominated. A nation which has a declining share of trade, has 25% trade deficit can't continue forever to set the rules.
    The net result of this is that whereas the US was once pretty much everyone else's trading partner, now China is. This means that like it or not, China will set the rules, maybe not right now but eventually. What constrains them now is that they need everyone else's markets to remain open to avoid an export downturn and social unrest and that their limited military power and energy resources means that they can be choked off quite easily. Both both of those situations are temporary, and very temporary in the case of the military question.

    They are getting very aggressive in that regard and they seem to regard America's Pacific pivot as some sort of bluff- right now whether they call that bluff or not depends on how big a bluff they think it is, but it ultimately will not matter, because the day is not too far off when they will either rule the Pacific or make it prohibitively expensive for anyone to seriously interfere. Whenever you hear anyone talking about Europe stepping up its military role or anyone trying to persuade us to join some sort of alliance, China forms a key part of the reasoning- we "need" to do more so that the USA can concentrate its resources on "containing" China.
    Faoi mhóid bheith saor

  8. #8

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    Quote Originally Posted by Dan_Murphy View Post
    Isn't it?
    No not really

    Here's a link that allows you to download a document explaining why trade deficits don't matter.

    Why Trade Deficits Don't Matter | Heartland Institute
    ''The tattoo has a profound meaning: the superficiality of modern man’s existence.'' - Theodore Dalrymple

    "Any fool can make something complicated. It takes a genius to make it simple." - Woody Guthrie

  9. #9
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    Quote Originally Posted by stopdoingstuff View Post
    Not really. It means that poor consumers can buy stuff for cheaper, and all those dollars must eventually make their way back to the USA at some point because they are only useful if they can be traded for something priced in dollars (consumer goods or capital investments). In a sense, this represents a wealth transfer from poor Chinese workers to relatively richer American consumers, since it is the policy of the Chinese government to keep their exports cheap. The real problem is not the deficit itself but that the US economy is not really competitive.
    how do you know all this stuff(ive read the other replies you left here) but how do you know this stuff? are you studying economics? genuinely want to know. cheers

  10. #10

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    Quote Originally Posted by BookFace View Post
    how do you know all this stuff(ive read the other replies you left here) but how do you know this stuff? are you studying economics? genuinely want to know. cheers
    See my post above (Nbr 8) and download the document. It's only about 15 pages long, excluding references.
    ''The tattoo has a profound meaning: the superficiality of modern man’s existence.'' - Theodore Dalrymple

    "Any fool can make something complicated. It takes a genius to make it simple." - Woody Guthrie

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