A number of great import
China has the world’s biggest trade deficit—in services
NOT long ago, China’s cheap currency and its large current-account surplus were the biggest controversies in global economics. American policymakers accused China of manipulating its currency for competitive gain and flew to Beijing to convey their displeasure. Some commentators blamed the global financial crisis on China’s surplus and its accumulation of safe American bonds, which encouraged America’s financial industry to invent lucrative, but toxic, substitutes. After the crisis, they then blamed China’s surplus for America’s failure to export its way out of trouble.
This article appeared in the China section of the print edition under the headline “A number of great import”
From the February 15th 2014 edition
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Why are Chinese soldiers fighting in Ukraine?
They have been showing up on both sides of the battlefield throughout the war
China’s shoemakers seem more sanguine than its politicians
A trade war will cause a lot of damage, but many have weathered storms before
To secure exports to Europe, China reconfigures its rail links
A new line will bypass its best friend, Russia
The Panama ports deal is delayed, as China signals dissent
Xi Jinping may be wanting to increase leverage over America
China has a thriving black market for personal data
The surveillance state is good at collecting information but bad at keeping it safe
China could greatly reduce its reliance on coal. It probably will not
Even though solar and wind power are growing at a blistering pace