1/5
Reuters: "China's vice commerce minister Ren Hongbin said on Wednesday there are still many concerns for foreign trade, especially for struggling smaller exporters, and China will introduce a new round of measures to stabilise it in due course."
reuters.com/world/china/ch…
Reuters: "China's vice commerce minister Ren Hongbin said on Wednesday there are still many concerns for foreign trade, especially for struggling smaller exporters, and China will introduce a new round of measures to stabilise it in due course."
reuters.com/world/china/ch…
2/5
China's exports have surged in the past year, and it has been running the highest monthly trade surpluses in its history, and yet Beijing is still concerned about struggling exporters.
China's exports have surged in the past year, and it has been running the highest monthly trade surpluses in its history, and yet Beijing is still concerned about struggling exporters.
3/5
"Measures to stabilize trade" is usually a euphemism for additional indirect export subsidies, and so we should probably expect tax cuts, further spending on logistics and so on to increase export competitiveness, ultimately to be paid for by the household sector.
"Measures to stabilize trade" is usually a euphemism for additional indirect export subsidies, and so we should probably expect tax cuts, further spending on logistics and so on to increase export competitiveness, ultimately to be paid for by the household sector.
4/5
The timing isn't totally surprising. Beijing is trying to manage the contradiction between boosting growth and restraining debt, and larger trade surpluses help moderate the adverse consequences for GDP growth of slower credit growth.
The timing isn't totally surprising. Beijing is trying to manage the contradiction between boosting growth and restraining debt, and larger trade surpluses help moderate the adverse consequences for GDP growth of slower credit growth.
5/5
These surpluses however do come at the expense of the US and other trading partners who are also trying to rein in debt while boosting domestic growth. Less debt for China, in other words, means more debt for its trading partners.
These surpluses however do come at the expense of the US and other trading partners who are also trying to rein in debt while boosting domestic growth. Less debt for China, in other words, means more debt for its trading partners.
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