Global Economy, Competitiveness, Government Policy, Economic Environment, Labor
While there is no debating that China must engage in acceptable trade practices, the world must recognize significant shifts in the Chinese landscape. Far from just slowing, China is seeing changes to its growth composition and to its potential growth that might turn the economic policy focus more inward, although, without a doubt, China will remain a critical player on the global economic stage. A broad understanding of such shifts in the nation is needed for an optimal answer to the “China question.”
The following is a note in advance of a full report on the 2015 U.S. and China trade statistics from Ernie Preeg, Ph.D., senior advisor for internatiional trade and finance for the MAPI Foundation, the research affiliate of the Manufacturers Alliance for Producticity and Innovation.
The U.S. global trade deficit in manufactures rose substantially in the third quarter and despite some moderation in Chinese trade, the gap between the two countries continues to widen, according to an analysis from the MAPI Foundation, the research affiliate of the Manufacturers Alliance for Productivity and Innovation.
Over the last 20 years, the growing global economy has allowed manufacturers to enter new markets to serve an increasingly global customer base while also shortening supply chains and reducing cost structures.
U.S. exports of manufactures in July were $94 billion, down 4% from 2014, imports were $153 billion, up 1%, and the trade deficit soared to $59 billion, up by 11%, continuing the double-digit deficit growth during the first half of the year, as analyzed in the MAPI second quarter report on U.S.