Highlights:
China’s trade surplus will reach $990 billion by 2024, surpassing previous records.
Exports, particularly of cars and solar panels, created a surplus, overshadowing imports.
Key background:
China has announced a record trade surplus of nearly $1 trillion by 2024, as the country’s exports far exceed imports. The surplus reached $990 billion, breaking the previous record of $838 billion set for 2022. This growth is due to the incredible dominance of Chinese factories in global manufacturing, with exports from electric cars to solar panels proving hugely profitable.
The level of the surplus, adjusted for inflation, is unmatched in modern times, surpassing even the trade surpluses of other major economies such as Germany, Japan, and the United States. The last time any country experienced such an export boom was just after World War II when the US emerged as the global manufacturing leader.
China’s export-driven economy has faced increasing criticism from its trading partners. Many industrialized and developing countries have imposed tariffs in an attempt to stem the tide of imports, leading to increased tensions and the threat of a potential trade war. America is expected to strengthen its position under the administration of President-elect Donald Trump.
Despite a deficit in natural resources such as oil, China’s trade surplus in manufactured goods accounted for 10% of its GDP, a share unmatched by any nation in recent history. This growth in exports has created millions of jobs, not only in manufacturing but also in high-skilled fields such as engineering, research, and design.
However, China’s domestic economy has faced challenges, mainly due to the downturn in the housing market, which has led to job losses and cautious consumer spending. The country’s shift to reliance on manufacturing, including advances in automotive and solar production, has greatly depressed its import levels, while its growing growth in these sectors positions it as a central player in world trade.
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