As recently as 2008, China’s net trade surplus accounted for 8% of GDP; by 2018, that figure was only about 1.3%—less than either Germany or South Korea, where net trade surpluses generate between 5% and 8% of GDP. The US isn’t far behind its Eastern neighbor: In 2018, US had a trade deficit of about 3% of GDP, down from 5% in 2006....
Instead, China’s economy today is driven by domestic consumption. In 11 of the 16 quarters since 2015, consumption has contributed more than 60% of GDP growth. In addition to becoming the world’s biggest market for online retail, the country now represents more than 30% of global market in luxury goods, automotive, consumer appliances, mobile phones, and spirits....Quartz (May 6)
For all the hubbub about the US-China trade war, trade is a fraction of China's economy
Jonathan Woetzel and Jeongmin Seong
1 comment:
Gives a totally misleading picture of the reality. Trade consists of exports plus imports, and not just net trade. Exports account for roughly 20% of the Chinese economy, and imports roughly 18%. So almost 40% of Chinese GDP is directly from international trade. and the remaining 60% probably is highly dependent on this trade.
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