A query to the paper “Are the forces that cause China's trade surplus with the USA good?”: A response to Professor Jonathan E. Leightner
Journal of Chinese Economic and Foreign Trade Studies
ISSN: 1754-4408
Article publication date: 8 February 2011
Abstract
Purpose
This paper aims to conceptually argue that China's trade surplus with the USA is good by clarifying its fundamental forces from specific perspective.
Design/methodology/approach
China's trade surplus with the USA is simply the result of comparative advantage under the background of international intra‐product specialization. Being the consequence of global resources optimization allocation, China's trade imbalance, including trade surplus with the USA, is certainly a win‐win game in international trade.
Findings
There are strong reasons to believe that China's trade surplus with the USA is beneficial to both China and the USA.
Originality/value
The forces causing China's trade surplus with the USA are complex and multiple different conclusions may be reached from different perspectives. This paper argues that one of the fundamental forces driving China's trade surplus with the USA is international intra‐product specialization, and from this perspective, it can help us understand that China's trade surplus with the USA is good for both nations to some extent.
Keywords
Citation
Dai, X. and Zhang, E. (2011), "A query to the paper “Are the forces that cause China's trade surplus with the USA good?”: A response to Professor Jonathan E. Leightner", Journal of Chinese Economic and Foreign Trade Studies, Vol. 4 No. 1, pp. 45-54. https://doi.org/10.1108/17544401111106806
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited