Chinese Trade: Trade Deficits, State Subsidies and the Rise of China (Routledge Studies in the Modern World Economy),Used

Chinese Trade: Trade Deficits, State Subsidies and the Rise of China (Routledge Studies in the Modern World Economy),Used

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Theres no question, compared to the advanced economies Chinas economic growth rates have been spectacular, but in most instances the economic analysts tend to forget that a large part of Chinas 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 capitalintensive industries?This book shows that government subsidies play a big part in Chinas 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 Chinas trade practices with the West, but none of this work addresses the real unsustainable dilemma. Much of the current literature discusses the problems but doesnt explain the root cause of Chinas lopsided trade practices with the West or explain in detail how China finances its government subsidies, with nothing written that explains that Chinas subsidized exports to the United States and European Union are basically selffunded 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 Chinas 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 Chinas exports to the West.

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