Posted by: mulrickillion | March 12, 2012

China’s trade surplus overvalued

Xinhua, March 8, 2012 —

BEIJING – Service trade figures were not included in the calculation of China’s trade surplus, causing it to become overvalued and creating a distorted picture of the country’s foreign trade, a former commerce official said Wednesday.

Incomplete statistics showed that China’s service trade sector experienced a deficit of about $60 billion last year, compared with a surplus of $115.1 billion in traded goods, said Ma Xiuhong, former vice minister of commerce.

Ma, who is also a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), China’s top political advisory body, urged the government to start including service trade volume in calculations of the country’s trade surplus.

The actual surplus would fall below $60 billion after taking the deficit into account, Ma said at a panel discussion of the CPPCC’s ongoing annual session.

China’s trade surplus has increased trade frictions and put pressure on its economic policies, Ma said.

"The calculation is not only a matter of statistics, but something that affects the trade situation and changes global attitudes," Ma said.

China’s trade surplus overvalued|Economy|chinadaily.com.cn


Responses

  1. *snigger* I’m not sure if this smoothing the figures over because there was a genuine cock up, because it makes people here look less greedy, or because everybody in the world of economics should be sat in the ducking stool by now…

  2. Yes, you have a good point, maybe they now look a little less capitalist and just maybe it will clam every one down a bit. However, I still find it difficult to believe that their economists would actually overlook trade in services in their figures. Otherwise, talk later old friend, and thanks for your comment.🙂


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