China is one of the largest trading powers, second only to the United States in terms of imports. At the same time, China's export volume is significantly higher than the US, and experts predict the country's exit to first place in the world in terms of economy. For each country with which China enters into trade relations, it quickly becomes one of the key partners. In this balance of trade balance lies the success story of Chinese modernization, which lasted the last twenty-five years, but it also carries many dangers.
China Export and Import
Entering into trade relations with China, any state sooner or later finds itself in a state of trade deficit. The USA did not escape this fate. Between 2010 and 2013, the imbalance more than tripled and reached three hundred billion dollars in favor of China.
In addition, more and more often it becomes known about conflicts between trading partners and numerous accusations against China related to the fact that the country's authorities protect companies through cheap loans and tax incentives. Increasingly, it is said that China's industry is actively supported by the central government.
Internal problems
At first glance, it might seem that a significant advantage in favor of China gives it only advantages, but this is not entirely true. The fact is that this state of affairs makes the country dependent on the external conjuncture and recessions of the international market.
Realizing the possible negative consequences of a significant advantage in favor of exports, China is making serious efforts to stimulate the domestic market and refuses to commission new capacities, recognizing their redundancy.
To date, banks in China have accumulated such an amount of money that it is difficult to absorb without affecting the balance in the economy. Even real estate cannot absorb huge money supply, and more and more often it becomes known about the unsold millions of square meters of newly built housing.
However, the Chinese leadership does not despair and offers new infrastructure projects involving a large number of international players. However, each of these projects aims to increase the availability of Chinese goods to European consumers.
The international cooperation
An important place in China's export structure is occupied by industrial equipment and other mechanisms, as well as wholesale shipments of clothing, textiles and mobile phones. The traditional flexibility of the Chinese business and its ability to adapt to the needs of consumers has made China also one of the important suppliers of food products to the international market.
The main trading partners for China are its closest neighbors - Korea and Japan, as well as Germany and Hong Kong, which is a special administrative region of the PRC. At the same time, the main import flows were directed to Japan, the USA, Korea, Germany and Australia.
China's export structure
Since the 1980s, China's economy has grown steadily. Industrial production and exports grew. By 2014, China's exports exceeded two trillion dollars, with half of the total volume accounted for precision engineering: computers, telephones, telecommunications equipment and microcircuits. At the same time, crude oil, automobiles and iron ore became the main import items.
However, such a structure began to cause concern among the Chinese authorities, since the incredible volumes of industrial production, which can not always be classified as environmentally friendly, put serious pressure on the environment and make quite large territories unsuitable for life.
Global Impact of Chinese Trade
The growth of the Chinese economy is felt in almost all parts of the world, and this influence is far from always positive, because under the pressure of the Chinese model of production, national economies are changing and reorienting to trade in raw materials, which, in turn, significantly reduces the incomes of the local population.
At the same time, intensive Chinese expansion in the international market leads to the popularization of Chinese culture. Thus, we can say that China's export also includes language. For example, in some African countries, calls are increasingly being made to replace school English classes with Chinese courses. This is due to the fact that for many countries in Africa, China quickly became a major trading partner and a source of major investment. For example, Egypt sells huge volumes of oranges to China, Ghana supplies cocoa there, and South Africa sells wine.
At the same time, Chinese demand is changing the landscape of South America. Green spaces are cut down for many kilometers, giant ports are built to send megatankers to China, and roads stretch across the continent from Brazil, destroying forests and ecosystems, to the ports on the Pacific coast of South America. Thus, China's exports and imports are important not only for the Chinese or global economies, but also for the ecology of the PRC and its trading partners.