Yeah, you read that right, China just overtook U.S. as the world’s largest trading partner in terms of the amount that they export and import. And if you hadn’t known, the World’s Largest Trading Partner is a title that the U.S. has held…for over sixty years. If those rednecks knew economics they’d be pretty pissed eh? Personally (that means its my own opinion and doesn’t reflect any group or organizations) I’m surprise that China didn’t overtake them half a decade ago, but that’s likely because of the sheer amount of goods that U.S. imports from other countries. China’s market ports in the world have increased significantly it seems.
Now for the concrete numbers. The U.S. Commerce Department reported that U.S. imported and exported a total of $3.82 trillion of goods while China’s custom department reported in January that China had traded $3.87 trillion in goods in 2012. Additionally their surplus in services was reported at 195.3 billion while China’s 2102 trade surplus totaled in at 231.1 billion, as reported by the Bureau Economic Analysis. Andy Shrenk, an economic expert at Investcafe, told RT.com that “The main reason for this growth is the Chinese government policy directed at stimulating domestic demand, which improves imports to growth,” He also said that China had increased the amount of goods it imports by 5 times in the last five years.
Jim O’Neil, economist and chairman of Goldman Sach’s assessment management division said told Bloomberg that “For so many countries around the world, China is rapidly becoming the most important bilateral trade partner,” What that means is that, for example, while some countries may export more that China (maybe) those countries don’t necessarily export goods to them and the number of countries involved may be small (the EU for example, they only work well within themselves). China surpassed the U.S. as the world’s largest trading partner last November and 124 countries consider it their largest trading partner while only 76 can say the same about the U.S. This number is actually fairly recent too. Just back in 2006 U.S. these numbers were reversed (seriously).
While China is now the World’s largest trading partner, and its GDP growth is much larger than the U.S. the World Bank says that the States still has an economy twice the size of China. That may not make sense to some people but its calculated differently. U.S.’s GDP last year was $15 trillion while China’s was $7.3 trillion.
Well…that was A LOT of numbers wasn’t it? Weather you read all that or not, the case still remains that the U.S. is declining from the world and maybe this century may just be China’s. Thoughts?