OpEdNews Op Eds

China's Foreign Reserves Decline While the U.S. Believes China Trade is Unfair

By       Message John Iacovelli     Permalink
      (Page 1 of 1 pages)
Related Topic(s): ; ; ; ; ; ; ; ; , Add Tags Add to My Group(s)

View Ratings | Rate It


- Advertisement -

China's foreign exchange reserves declined in the fourth quarter of 2011, the People's Bank reported (English language report). It was the first drop since the Asian financial crisis of 1997-1998.

Holdings of foreign wealth fell to $3.18 trillion at the end of last year from $3.2 trillion at the end of September -- a .625 percent decrease.

The U.S. monthly trade deficit with China grew in December to $47.8 billion. The annual trade deficit with China for 2010 was $273 billion.

In the U.S., recent public opinion polls indicate that nearly two-thirds (63 percent) of Americans believe China practices unfair trade. China's trade balances with other nations do not necessarily support the view that China practices unfair trade. Of China's top ten trade partners in 2010, only the U.S., Hong Kong, and India had trade deficits. Developed countries, including Japan, Germany, South Korea and Taiwan, enjoyed sizable trade with surpluses.

China Trade Balances With Top Ten Partners 2010 graphic table by scribillare.com
The chart indicates that the countries that sell consumer goods (such as Germany), durable goods (such as Japan), raw materials (such as Brazil) or a mix (such as South Korea), enjoy reasonably positive trade balances on large volumes of trade with China. Note that Hong Kong, sometimes referred to as "the gateway to China," enjoys a large trade in financial services with China as well as other unusual trade activity due to its unique status. The Hong Kong data point may not be indicative of other countries' trade.

- Advertisement -
The United States, having outsourced its industrial production for virtually all but military goods, by not selling military goods to China (if indeed China would want such goods), has little prospect of lowering its trade deficit with China without a change in course.

China Trade Balances With Top Ten Partners 2010 by scribillare.com

The January 5, 2012 U.S. Strategic Guidance document, which states the U.S. "will continue to make the necessary investments to ensure that we maintain regional access and the ability to operate freely" (in regions of the Pacific important to China), indicates that little policy change should be expected.

This article was co-published at scribillare.com

- Advertisement -


View Ratings | Rate It

I am a professional in the computer field whose specialty is databases. I grew up, went to school in, and lived in New York for many years. I have lived in Florida for twenty years now, and it is a wonderful place to see and experience nature. I am (more...)

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

Go To Commenting

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Occupy Movement Supporters Consider Eminent Domain as a Tool to Help Homeowners in Foreclosure

Occupy Movement and Libertarians, Tea Partiers Find Common Cause in Fight Against NDAA

Book Review – Truth And Consequences: The U.S. vs. Bradley Manning
By Greg Mitchell and Kevin Gosztola

Measuring Corporate Tax Dodgers by Industry

Making the Connections - Why Crackdown on OWS Now?

An American Spring is in the Air