Wall Street Journal (July 9)
2020/ 07/ 10 by jd in Global News
“Slack Chinese imports are a symptom of the underlying reason China’s trade surpluses, not just with the U.S. but the world, persist: China consumes too little and saves too much.” Though China’s surpluses have shrunk as a share of GDP, due a decade of explosive GDP growth, the surpluses “remain enormous.” Domestic “consumption is still under 40% of Chinese GDP, one of the lowest ratios among major economies. The persistence of those imbalances is why trade conflicts aren’t about to go away even if Mr. Trump isn’t re-elected.”
Tags: China, Conflicts, Consumption, GDP, Growth, Imbalances, Imports, Saves, Slack, Trade surpluses, Trump, U.S.
