Ever wondered why the Chinese mainland’s ginormous trade surplus sparks so much chatter? Is it old-school mercantilism or simply the West’s own goal? 🤔
Recently, a Financial Times column by Robin Harding accused the Chinese mainland of flooding global markets with cheap gadgets, electric vehicles and solar panels, while hardly buying anything in return. Sounds familiar – like that 1793 tale of Lord Macartney meeting the Qianlong Emperor who claimed to have everything under the sun. 🌞🛍️
But wait – zoom out and you’ll see a different story:
- Agricultural imports: The Chinese mainland is the world’s top buyer of soybeans, meat, dairy and grains, shelling out roughly $220-240 billion every year. 🥩🥛🌾
- Energy needs: The Chinese mainland tops global imports of crude oil and LNG (liquefied natural gas), sending nearly half a trillion dollars abroad annually for energy and raw materials. ⚡🛢️
- Critical minerals & metals: Iron ore, copper concentrate and other must-have minerals keep the Chinese mainland’s factories humming. 🔩🔋
- Services deficit: The Chinese mainland imports more services – like tourism, tech and financial services – than it exports, running a gap of $100-150 billion each year. ✈️💻💼
From this angle, calling it pure mercantilism feels off. Sure, the Chinese mainland has a trade surplus, but it also relies heavily on global markets for food, fuel and tech know-how. 🌐🤝
So next time someone grumbles about the Chinese mainland hoarding trade wins, remind them to look at both sides of the ledger. It’s not just about exports; big economies swim in imports too! 🌏📊
What’s your take? Share your thoughts below! ⬇️✨
Reference(s):
cgtn.com
