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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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A query to the paper “Are the forces that cause China's trade surplus with the USA good?”: A response to Professor Jonathan E. Leightner


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Title:A query to the paper “Are the forces that cause China's trade surplus with the USA good?”: A response to Professor Jonathan E. Leightner
Author(s):Xiang Dai, (School of International Economics and Trade, Anhui University of Finance and Economics, Bengbu, People's Republic of China), Erzhen Zhang, (School of Business, Nanjing University, Nanjing, People's Republic of China)
Citation:Xiang Dai, Erzhen Zhang, (2011) "A query to the paper “Are the forces that cause China's trade surplus with the USA good?”: A response to Professor Jonathan E. Leightner", Journal of Chinese Economic and Foreign Trade Studies, Vol. 4 Iss: 1, pp.45 - 54
Keywords:China, International trade, Surpluses, United States of America
Article type:Conceptual paper
DOI:10.1108/17544401111106806 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Acknowledgements:This paper is a response to “Are the forces that cause China's trade surplus with the USA good?” by Jonathan E. Leightner in JCEFTS 3.1, 2010.
Abstract:

Purpose – This paper aims to conceptually argue that China's trade surplus with the USA is good by clarifying its fundamental forces from specific perspective.

Design/methodology/approach – China's trade surplus with the USA is simply the result of comparative advantage under the background of international intra-product specialization. Being the consequence of global resources optimization allocation, China's trade imbalance, including trade surplus with the USA, is certainly a win-win game in international trade.

Findings – There are strong reasons to believe that China's trade surplus with the USA is beneficial to both China and the USA.

Originality/value – The forces causing China's trade surplus with the USA are complex and multiple different conclusions may be reached from different perspectives. This paper argues that one of the fundamental forces driving China's trade surplus with the USA is international intra-product specialization, and from this perspective, it can help us understand that China's trade surplus with the USA is good for both nations to some extent.



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