The Impact of China's Trade Surplus on Global Economy

The foreign trade balance. The current imbalances in international trade

China leads the last 20 years growing at an average rate of 10 percent annually and has hardly been affected by the great recession plaguing the world since 2007. It is therefore the main character and now we need the argument, which is none other than economic globalization. China has become the economy grows faster and is helping to further the transformation of economic structures with the opening of goods and capital markets and globalization. China saves 52 percent of the income it generates, while in the U.S. and saving for many years has been 0 percent. The success of China, is to become the world's factory, where export-oriented model. China's success places significant imbalances in the balance of payments of different economic zones. For example, the large imbalance between China and the U.S. The latter has a trade deficit, while China in contrast has a trade surplus. An imbalance of this size is unsustainable in the long term. U.S. can not continue to borrow endlessly, year after year abroad and especially with China. It is not good for America, but also for China. The structural changes are definitely necessary to return the balance of trade between the two countries are first and foremost, China should abandon its policy that could be called 'war economy' and usher in an economy based on improving the quality of life of its population. In war situations consumption is restricted to the maximum, in order to finance the costs of the war. China has raised its particular war against underdevelopment and saves 52 percent of their income to spend all that money for investment. After many years of growing at impressive rates now is the time to start to move his people the fruits of that growth. In this way, growing domestic demand, exports will no longer be the sole support of economic growth, so let's move the balance of payments deficit with its trading partners and especially the U.S.. Second, America must also do their part. Must reduce its consumption. With only reduce their consumption and thus CO2 emissions to levels in Europe and Japan, import of raw materials would be reduced considerably. And reducing consumption would reduce the volume of imports at sustainable levels.