Earlier this year Water Snake is no good news for China. The country surpassed the United States (U.S.) to be the largest trading nation in the world.
According to the Bureau of Customs Administration of China, the value of exports and imports in 2012 China surpassed the U.S. to figure reached 3.87 trillion U.S. dollars. While the U.S. Department of Commerce reported last week, the total value of import-export trade Uncle Sam's country of 3.82 billion U.S. dollars.
Given the import-export trade balance, China has also led to a surplus of 231.1 billion U.S. dollars, while the U.S. has a trade deficit of 727.9 billion U.S. dollars. Jim O'Neill, an economist at Goldman Sachs Group Inc., said the emergence of China as the world's largest trading nations to influence global trade.
According to him, the dominance of Chinese trade would disrupt regional trade. China will become the most important commercial partner for a number of countries including Germany and France are eager to increase exports doubled. "For many countries around the world, China will quickly become the most important bilateral trading partner," said O'Neill.
He predicted that by the end of the decade will be a lot of European countries who trade with China is more individual than other bilateral partnership in Europe.
Economic smaller
According to World Bank data, even though in 2012 China's total import-export trade more, the U.S. economy nearly doubled the size of China. If in 2011 the gross domestic product (GDP) reached 15 billion U.S. dollars, China's GDP is only at 7.3 trillion U.S. dollars.
Nicholas Lardy, a senior economist at the Peterson Institute for International Economics in Washington, said China's imports have grown faster than exports since 2007. "It is remarkable, that the economy is smaller than the U.S. has a greater trading volume," he said.
According to him, total trade between China and the huge surge in exports is not due to the currency substantially undervalued. China became the world's biggest exporter in 2009, while the United States became the importer. Value of U.S. imports last year amounted to 2.28 trillion U.S. dollars, while the value of China's imports amounted to 1.82 trillion U.S. dollars.
HSBC Holdings Plc had previously been predicted, China will overtake the U.S. as the world's major trading nations in 2016. The U.S. emerged as a world trading power after World War II, for spearheading the creation of trade and the global financial architecture.
While China began to focus on trade and foreign investment to boost the economy since the decade ending isolation under Mao Zedong. China's economic growth averaged 9.9 percent per year from 1978 to 2012.
Eswar Prasad, a former International Monetary Fund (IMF), said China is energy-consuming, the car market and the world's largest foreign reserves. He said most of China's trade involves importing raw materials and components to be assembled into finished products and re-exported.
Previously, the Economist UBS AG and Australia & New Zealand Banking Group Ltd (ANZ) questioned the truth of the Government of China import export data.
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