Chinese Trade: Trade Deficits, State Subsidies and the Rise of China (Routledge Studies in the Modern World Economy)

There's no question, compared to the advanced economies China's economic growth rates have been spectacular, but in most instances the economic analysts tend to forget that a large part of China's growth has been dictated by government industrial subsidies. How did China go from a bit player overnight to the largest exporter in the world in capital-intensive industries? This book shows that government subsidies play a big part in China's success. Government subsidies include those to basic industries: energy (coal, electricity, natural gas and heavy oil), steel, glass, paper, auto parts, solar and more. A lot has been written about China's trade practices with the West, but none of this work addresses the real unsustainable dilemma. Much of the current literature discusses the problems but doesn't explain the root cause of China's lopsided trade practices with the West or explain in detail how China finances its government subsidies, with nothing written that explains that China's subsidized exports to the United States and European Union are basically self-funded by its enormous trade surplus with the West. A trade surplus represents a net inflow of domestic currency from foreign markets and is the opposite of a trade deficit, which would represent a net outflow. Moreover, this is the only book that describes China's current trade practices with the West as a zero sum game at the expense of the West. This book provides two solutions to this endless quagmire: an increase in Western exports to China so that China and the West have more of an equal trade balance, or a very steep reduction of China's exports to the West. Chinese Trade- Front Cover Chinese Trade Title Page Copyright Page Contents Acknowledgements PART I: United States, the European Union and China Chapter 1: Introduction The outline of the book Notes References Chapter 2: Nixon and Kissinger Mao Zedong meets Richard Nixon, February 21, 1972 Note References PART II: Spectacular growth and the Chinese economy Chapter 3: China reforms from 1978 to 1990 References Chapter 4: China from 1990 forward References Chapter 5: China’s currency manipulation References PART III: Foreign direct investment Chapter 6: US foreign direct investment (FDI) References Chapter 7: European foreign direct investment Note References Chapter 8: China foreign direct investment in the United States References Chapter 9: China foreign direct investment in Europe Note References PART IV: Trade balances Chapter 10: US trade policies and trade balances with China in the 1990s References Chapter 11: EU trade policies and trade balances with China in the 1990s References Chapter 12: US trade policies and trade balances with China from 2000 Most recent developments US trade with China Foreign investment conditions in China Note References Chapter 13: EU trade policies and trade balances with China from 2000 Total goods: EU-China trade flows and balance 2005–2016 Trade flows by STIC section 2015–2016 Trade flows by SITC section 2012–2014 The EU top trading partners 2015–2016 References PART V: Conclusions Chapter 14: Conclusions Trade deficits and the manufacturing sectors of the West The future of EU and US manufacturing The trade deficit with China and the macroeconomic factors Trade deficits equal a reduction in GDP References Index This book shows that government subsidies play a big part in China's economic success. Subsidies include those to basic industries: energy (coal, electricity, natural gas and heavy oil), steel, glass, paper, auto parts, solar and more. Their exports to the United States and European Union are basically self-funded by its enormous trade surplus with the West. A trade surplus represents a net inflow of domestic currency from foreign markets and is the opposite of a trade deficit, which would represent a net outflow. This book also describes China's current trade practices with the West as a zero sum game at the expense of the West. It offers two solutions to this quagmire: an increase in Western exports to China so that China and the West have more of an equal trade balance, or a very steep reduction of China{u2019}s exports to the West Chinese Trade demonstrates how government subsidies play a large part in China's economic growth success. Moreover, it describes China's current trade practices with the West as a zero sum game at the expense of the West, and explores two solutions: an increase in Western exports to China or a very steep reduction of China's exports to the West.