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Why China’s Trade Deficit Should Not Appear?

In: On China's Trade Surplus

Author

Listed:
  • Tao Yuan

    (Nankai University)

Abstract

As a developing country, trade deficit should not appear in China. Both the stage of economic development and the level of social development of China tell us that trade deficit is not desirable for China. Export is indispensable for China’s current industrialization process and economic growth. Enormous labor pressure from the dual economy can’t be solved by the domestic demand alone. Moreover, as the “world factory” China is becoming the production base of many Chinese and foreign enterprises, so the products should be exported to all over the world. Besides, in the crisis era, when all the countries eager to stimulate economic growth by promoting exports, how China’s plan to promote economic growth can include the terms of restricting the export?

Suggested Citation

  • Tao Yuan, 2014. "Why China’s Trade Deficit Should Not Appear?," SpringerBriefs in Business, in: On China's Trade Surplus, edition 127, chapter 0, pages 43-57, Springer.
    • Handle: RePEc:spr:spbrcp:978-3-642-38925-2_3
    DOI: 10.1007/978-3-642-38925-2_3
    as

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