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.
Author(s): Richard Marino
Series: Routledge Studies in the Modern World Economy 178
Publisher: Routledge
Year: 2019
Language: English
Pages: viii+204
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
