Independent Insight Provider

Stewart Paterson

Macroeconomics

<p>Although, since the GFC, exports have played a less important role in China's economy, they are still very meaningful at about 20%% of GDP. Trade in aggregate amounts to about 33% of GDP in China, compared to less than 20% in the United States using WTO data for merchandised trade. Furthermore, the argument that because on a value added basis, net exports are a small share of the economy, and so the economy is not as dependent on exports as the headline numbers suggest, appears to be disproved…</p>

Although, since the GFC, exports have played a less important role in China's economy, they are still very meaningful at about 20%% of GDP. Trade in aggregate amounts to about 33% of GDP in China, compared to less than 20% in the United States using WTO data for merchandised trade. Furthermore, the argument that because on a value added basis, net exports are a small share of the economy, and so the economy is not as dependent on exports as the headline numbers suggest, appears to be disproved…

Money Matters: Can China Afford a Trade War?