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China's economic machine is once again accelerating, but the benefits are no longer broadly shared with the rest of the world China got the world’s attention last january when it announced that its trade surplus for goods and services had hit almost $1 trillion, an excess of exports to imports that no country had ever. Instead of acting as a locomotive for global demand, the country is.
The upshot is that goldman sees china growing about 0.6 percentage point a year faster over the next few years, but that will reduce the rest of the world’s growth by 0.1 point a year Greg ip notes that china used to be a driver of global growth, but its exports are now a headwind to growth in advanced economies. China’s growth is still good for the chinese people, and for some countries that sell inputs to its export machine.
‘beggar thy neighbour’ strategy reports citing analysts say beijing is pursuing a “beggar thy neighbour” growth model, expanding its economic reach at the expense of others
With dominance across a vast range of manufacturing sectors, china now holds significant leverage over global supply chains and its trading partners. China will grow about 0.6 percentage points faster annually over the next few years while reducing the rest of the world's growth by 0.1 point per year China's current account surplus could reach 1% of world gdp by 2029, goldman estimates, larger than any country's since the late 1940s China now accounts for 17% of global gdp.
Far from “coming at the rest of the world’s expense,” china’s growth supports global development, strengthens supply chains, and fosters shared prosperity.
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