Are the forces that cause China's trade surplus with the USA good?

Abstract

Purpose

This paper aims to conceptually argue that China's trade surplus with the USA is not good.

Design/methodology/approach

Net exporters (like China) give up current consumption in order to gain claims against future production. This paper argues that the reasons why China is trading current consumption for claims on future production are not good.

Findings

There are strong reasons to believe that China's trade surplus with the USA is not healthy for either China or the USA.

Originality/value

Other scholars have discussed the trading of the present for the future that is involved in trade surpluses, but no one (to the author's knowledge) has discussed when such a trade is good or bad.

Citation

Leightner, J.E. (2010), "Are the forces that cause China's trade surplus with the USA good?", Journal of Chinese Economic and Foreign Trade Studies, Vol. 3 No. 1, pp. 43-53. https://doi.org/10.1108/17544401011016672