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Journal cover: Journal of Chinese Economic and Foreign Trade Studies

Journal of Chinese Economic and Foreign Trade Studies

ISSN: 1754-4408

Online from: 2008

Subject Area: Economics

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Are the forces that cause China's trade surplus with the USA good?


Document Information:
Title:Are the forces that cause China's trade surplus with the USA good?
Author(s):Jonathan E. Leightner, (Johns Hopkins-Nanjing University Center, Nanjing, People's Republic of China and Augusta State University, Augusta, Georgia, USA)
Citation:Jonathan E. Leightner, (2010) "Are the forces that cause China's trade surplus with the USA good?", Journal of Chinese Economic and Foreign Trade Studies, Vol. 3 Iss: 1, pp.43 - 53
Keywords:China, Consumption, Surpluses, Trade balances, United States of America
Article type:Conceptual paper
DOI:10.1108/17544401011016672 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Abstract:

Purpose – This paper aims to conceptually argue that China's trade surplus with the USA is not good.

Design/methodology/approach – Net exporters (like China) give up current consumption in order to gain claims against future production. This paper argues that the reasons why China is trading current consumption for claims on future production are not good.

Findings – There are strong reasons to believe that China's trade surplus with the USA is not healthy for either China or the USA.

Originality/value – Other scholars have discussed the trading of the present for the future that is involved in trade surpluses, but no one (to the author's knowledge) has discussed when such a trade is good or bad.



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