China
Busting US-China Trade Deficit Myths
Public opinion in the United States has turned against free trade. Donald Trump’s election win was tied to an aggressive campaign promising to address trade imbalances, with a particular focus on Chinese trade practices
East West Bank CEO Dominic Ng sets things straight on trade figures that he calls outdated.
Public opinion in the United States has turned against free trade. Donald Trump’s election win was tied to an aggressive campaign promising to address trade imbalances, with a particular focus on Chinese trade practices.
On the campaign trail, Trump remarked that “China is responsible for nearly half of our entire trade deficit. They break the rules in every way imaginable.”
Without doubt, there are problems in the U.S.-China trade relationship. However, the current officially reported U.S.-China trade numbers are grossly inaccurate. They are based on outdated methods of data collection and calculation that were agreed to in the aftermath of World War II, and they have not been properly updated to reflect today’s global economy.
It is concerning that world leaders are primarily relying on these misleading trade figures to make major decisions that have the potential to damage economies and create ill will among nations that heavily depend on each other for their prosperity.
“It is concerning that world leaders are primarily relying on these misleading trade figures to make major decisions.” Dominic Ng
Traditional trade data are outdated and tell a distorted story
Let me explain why the trade data our leaders are using is problematic. Statistics traditionally used to measure trade flows do not fully reflect the globalization of production chains.
Currently, statistical agencies pin the entire trade value of a product to the last place it was exported from, even though the parts in the product come from many other countries. This method of data collection is based on the International Monetary Fund’s Balance of Payments Manual, which was first released in 1948, and never appropriately overhauled to reflect the new complexities of global value chains.
In the case of China, this means that commonly cited trade figures are distorted by the fact that China has become a final assembly point for many goods that contain a significant number of parts from other nations.
The classic example is the Apple iPhone
Apple takes care of design, development, marketing, and software creation for its phones in the U.S. High-value components of the iPhone come from different countries: Among the myriad iPhone 6 parts, displays are manufactured in South Korea, Japan, and elsewhere; processors come from the United States; touch ID sensors are made in Taiwan; and barometric pressure sensors come from Germany.
(This is the first editorial of a three-part series on the misunderstandings of the U.S.-China trade relationship.)
Business
China’s Travel Surge: Expanded Visa Exemptions Enhance Tourism and Business Prospects, Improving Access for Travelers and Strengthening Global Connectivity – Travel And Tour World
China has improved travel access by expanding visa exemptions, attracting millions of international visitors and fostering cultural exchanges, while enhancing global connectivity and positively shifting perceptions of the country.
The Shift in China’s Travel Landscape
China is experiencing a travel boom driven by a significant reduction in visa restrictions. Starting December 1, 2023, travelers from 38 countries, including major European nations, can visit visa-free for up to 30 days. This change reflects China’s commitment to enhance global mobility and revitalize its tourism industry post-pandemic. As a result, international arrivals increased to over 8.1 million by the third quarter of 2024, marking a 48.8% rise from the previous year.
Exploring Beyond Traditional Destinations
The new access has prompted travelers to seek immersive experiences, venturing beyond iconic sites like the Forbidden City. Tourists increasingly explore local cultures and markets, enhancing their understanding of daily life in China. Guides have adapted, offering tours that include cultural hotspots and local culinary experiences, thereby enriching the overall visitor journey and promoting authentic engagement.
Broader Implications for Global Connectivity
China’s visa-free initiatives foster greater international connectivity and cooperation in trade. As foreign travelers find it easier to engage with Chinese businesses, reciprocal visa easings may follow globally. The improved perceptions of safety and hospitality, highlighted through social media, contribute to a renewed interest in China’s diverse cultural landscape and its potential as a primary travel destination.
China
China-Denmark Trade and Investment: Key Developments and Emerging Opportunities
China’s investments in Denmark enhance collaboration in renewable energy, green technology, and digital infrastructure, aligning with both nations’ sustainable development goals. Their partnership, solidified by joint programs, underscores mutual economic interests and complementary strengths in green innovation and manufacturing.
As both countries share a commitment to sustainable development, China’s increasing investments in Denmark are driving innovation in renewable energy, green technology, and digital infrastructure. This partnership is further strengthened by Denmark’s expertise in wind energy and environmental solutions, aligning well with China’s goals to transition to a greener and more digitally advanced economy.
The growing trade and investment relationship between China and Denmark not only reflects mutual economic interests but also highlights the complementary strengths of each nation. Denmark’s high-tech manufacturing, environmental engineering, and green energy solutions are vital to meeting China’s evolving demands, while China’s large-scale market and industrial capacity offer vast opportunities for Danish enterprises. Together, these nations are paving the way for continued progress in sustainability, technological innovation, and economic growth.
In 2017, the two countries took a further step to solidify their relationship by establishing a Joint Work Programme for 2017-2020. The program acted as a blueprint for bilateral cooperation, encouraging strategic dialogues and joint ventures between the two nations in key areas such as trade, investment, environmental sustainability, and technology
The partnership was further reinforced in November 2021, when the Foreign Ministers of China and Denmark announced the commitment to a new phase of cooperation through the Green China-Denmark Joint Work Programme. The agreement emphasizes the acceleration of green technologies, renewable energy, positioning Denmark’s expertise in clean energy and green innovation as a crucial asset in China’s drive toward a greener economy.
Over the past five years, China’s exports to Denmark have shown consistent growth, further strengthening the economic ties between the two nations. This trend underscores their mutual commitment to expanding commercial relations and unlocking the potential for deeper cooperation.
China’s growing importance to Denmark, both as a market and as a supplier of production inputs, is evident in the economic integration over the last three decades. Today, China is Denmark’s fourth-largest export market, after the United States, Germany, and Sweden.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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China
Joe Biden in Africa: US president has ignored the continent for his entire term – why he’s visiting Angola
Joe Biden, having largely overlooked Africa during his presidency, is visiting Angola to address key issues and strengthen diplomatic ties, signaling a renewed focus on the continent.
Joe Biden in Africa: US president has ignored the continent for his entire term – why he’s visiting Angola
This article is republished from The Conversation under a Creative Commons license. Read the original article.
- China’s Travel Surge: Expanded Visa Exemptions Enhance Tourism and Business Prospects, Improving Access for Travelers and Strengthening Global Connectivity – Travel And Tour World
- China-Denmark Trade and Investment: Key Developments and Emerging Opportunities
- Joe Biden in Africa: US president has ignored the continent for his entire term – why he’s visiting Angola
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