Thursday, February 15, 2018

Chinese Imports and Exports Set to Surge Forward

Chinese Imports and Exports Set to Surge Forward
By Christa Buth
As of right now, a large majority of any American’s belongings were made in China, this is because of the large capacity of exports China has, and it is only getting greater. As Mr. Reuter said in class, ”I will give $20 to anyone wearing only clothes produced in the U.S.”. China and other countries exports support a great deal of America’s products. Thus with China’s exports rising, Americans can expect quite a few more products with the infamous “Made in China” sticker.
As of January 2018, China reported a 36.9% rise in imports and an 11.1% rise in exports. Because China’s trade surplus for the month amounted to a whopping $20.34 billion, it beat expectations set by a poll produced by Reuters (a business and financial news source). To be exact the data exceeded the polls expectations by 27.1% gap in imports and a 1.5% gap in exports. Now festivals, such as the Long Lunar New Year, may alter trade data for the month. This is due to increased spending for the holiday festivities and buying gifts that may be shipped from outside countries. But thus far there has been healthy domestic trade in 2018. 
As a change from past years (see graphs) data collected for the month of December 2017 indicated imports had risen 4.5% from where they were a year ago. Most of China’s imports are raw materials from Central America and Africa. China’s commodity consumption has fueled a world-wide boom in mining and agriculture. Specifically coal imports reached their highest rates since January 2014, according to Reuters records. This is most likely caused by colder weather hitting China and raising the public need for coal. It is natural for economies to fluctuate through time and as of right now the numbers are showing an upward trend. This meaning that China will be taking in more materials from other countries. Data currently shows exports have decreased a little, but with the upward trend set in January it is optimistic to say the trend will continue to rise. Data collected from December of 2017 shows that exports had risen 10.9% from where they were in December 2016, a great feat. With a larger global need for China’s exports, this boosts need for laborers and bringing the unemployment rate further down. With more citizens employed there are more active consumers, therefore boosting China’s economy.
In total January alone produces a trade surplus of $20.34 billion dollars while polls produced by Reuters predicted a 54.1% trade surplus. 

As of right now, China is the world’s second largest economy and grew by 6.9% last year. This beat strong predictions made for strong global and domestic demand. According to Tan Huileng for CNBC, ”a favorable external environment will continue to support China's exports in 2018. However, domestic demand may face challenges if there is a "a more pronounced-than-expected impact of the planned financial tightening and slower real estate activity,". If all goes well, China is looking towards a prosperous future. 



1 comment:

  1. The surplus for China will be great for their economy. As you said, the infamous sticker, “made in China,” is a stable for many products that Americans and other countries use everyday. It is worrisome that China is the responsible country for a lot of these imports for other countries because it can make a country too reliable on one another. If America all of the sudden couldn't buy products from China anymore than China would be out a lot of their economic growth. I do think it is good for China that they are having a large growth with their trade, but is it too much too fast?


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