China has been accelerating its trade adjustments in the recent months with United States and it has done as per experts what it should have done over two years earlier.
The country is now on its way to dismantling the political and economic leverage which United States has over China and its economy. In the last year, China had been stepping up its rate of decline in the trade surplus with United States to a level of 16.2%.
A few of the sinologists who are anxious are going to call it decoupling that is a misnomer for the belated exit of China from the position of unsustainable and excessive surplus of trade with United States.
They do not notice seemingly as per the experts that China has been getting out of a structural trap which they had imposed on themselves by slashing their purchases from United States at a rate annually of 12% between January and November in the year 2019.
The experts feel that instead of being worried about decoupling, those who advocate friendly ties between China and United States must remind Chinese that they should be doing the opposite by stepping the imports of the goods and services from America and if China did so, they won’t have to abandon their markets in United States by cutting the exports at a rate annually of 15.2% which they had done for close to all of the last year.
Taking the trade flows in account and the declining holdings of the debt of United States on China, they have bene concluding that a rapidly narrowing exposure is a matter of national interest for them.
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