The world is in trade deficit. Who is in surplus?

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Original: an Aoki source official account: distant Aoki has been authorized to reprint

Germany, a traditional manufacturing power, sells its products all over the world and is the locomotive of European economy. Since the merger of East and West Germany in 1991, it has been in a trade surplus.

In May, 2022, Germany’s trade surplus of 30 years was broken, with a trade deficit of 1billion euros for the first time.

Seeing Germany’s trade deficit is also a witness to history.


But it’s not over yet. After the data came out in May, I was surprised to find that almost all the major economies in the world are in trade deficits.

This month, France’s trade deficit was 6.01 billion euros.

This month, Britain’s trade deficit was $15.5 billion.

This month, Japan’s trade deficit was US $17.8 billion.

This month, South Korea’s trade deficit was $1.71 billion.

This month, the US trade deficit was 85.5 billion US dollars.

This month, India’s trade deficit was $24.2 billion.

Even Vietnam, which has recently been touted as a rising star in East Asia, had a trade deficit of $1.73 billion in May.

Looking ahead, it is all deficits, and almost all of the major economies are deficits.

Europe, America, Japan and South Korea are in deficit, even India and Vietnam are in deficit.

As we all know, trade is conserved. If there is a deficit, there must be a surplus. The sum of deficits must be equal to the sum of surpluses.

Globally, all the powerful economies we know are in deficit, so who is in surplus?

This round of global sudden general trade deficit is due to the sudden sharp rise, doubling and doubling of global energy and raw material prices.

Whoever imports more resources will lose a lot of blood, so all industrial countries basically have trade deficits.

It is the resource countries that have a huge surplus.

Australia, Russia, Brazil, Indonesia and Middle East countries have all made a lot of money recently. Their resources are not only selling well, but also at high prices. Huge trade surpluses are pouring into their pockets.

Against the background of soaring resources, industrial countries have deficits and resource countries have surpluses, which is a matter of course.

But in the list of trade surpluses in May, a strange country sneaked in.

China, as a large resource importer and a country that makes money by exporting industrial products, recorded a huge surplus in May, with a surplus of US $78.76 billion that month.

Among all the major industrial countries, only China has a surplus, and the rest are all deficits.

In the first five months from January to may 2022, China’s surplus reached a total of $300billion, an increase of 50% year-on-year from January to may 2021.

This is an incredible data, because in the context of soaring resource prices, China, as the world’s largest net importer of resources, should have lost the most blood and had the largest deficit, but in the end, it was a surplus, with a year-on-year increase of 50%.

Both are industrial countries, developing countries and populous countries, but India has a trade deficit of $101billion from January to may 2022.

Japan, South Korea and Germany all have deficits, and I dare not think about it before.

In addition to countries that rely on selling resources for a living, other developed and developing countries are in deficit.

Why does China, which is crazy about buying resources, have a surplus instead?

Many people are puzzled and extremely unsociable.

In fact, the truth is also very simple. It’s said that it’s rotten. However, many people have been skeptical.

All industrial countries have deficits. As for China’s surplus, it only shows that China’s production efficiency is much higher than that of other countries, and the gap is huge.

Chinese people work as before, and even reduce a lot of production efficiency because of the impact of the epidemic. How can we suddenly open a huge efficiency gap with other countries?

Because sometimes we don’t need to make progress. If other countries step back too much, they can also open a huge gap.

Think about it. Many people have to ask for leave from work for several days due to common cold and fever. What about “big cold”?

You don’t think you can go to work in three to five days.

Even if you are not afraid of death, you have to lie in bed for half a month, and someone has to take care of you. The old people and children in the family repeatedly catch large-scale colds back and forth, which will be abandoned in a few months a year.

By the end of the year, oh, the virus has mutated. Next year, we will have another round of “big cold”.

In this way, the working hours of the strong labor force in a year were delayed by recuperation and taking care of their families for twoorthree months.

If this is the case across the country, the overall production efficiency will be horribly reduced.

If the prices of industrial products generally rise sharply, the cost of losses can also be offset.

In fact, there is indeed great inflation.

However, Europe and the United States cannot bear the inflation cost caused by the rise in the price of industrial products, and they are strongly opposed to it. In addition, a large number of Chinese products are supplied to depress prices…

As a result, Europe, America, Japan, South Korea and even India and Vietnam have trade deficits.

What is the use of such a huge trade surplus for China?

It is well known that what we get with so much sweat and blood is a pile of waste paper. Those countries with trade deficits instead enjoy a large number of consumer goods and live a happy life.

What is the use of surplus? As early as 1934, the people’s review once said this question. At that time, the original words were:

“China is a semi colonial country with backward economy and a debtor country with annual trade surplus. This large annual trade deficit does not mean the improvement of the general consumption power of the people. On the contrary, it means the absolute stagnation and decline of national industry.”

In 1934, China’s annual trade deficit did not represent the improvement of China’s consumption power, but the absolute stagnation and decline of China’s national industry.

That’s very clear.

Why every country is elated and proud when it has a trade surplus. Japan, South Korea and Germany have been boasting about their trade surplus for decades, which is the reason.

Everyone is not stupid. It is very clear what the surplus represents, especially the surplus of industrial countries, which is much more terrible than that of resource countries.

Only those bad people will say that the surplus is waste paper.

The amount of trade is conserved. As long as you don’t have a deficit, it must be someone else.

Today, the major industrial powers are in deficit, and only China is in surplus.

China has become the only anomaly, which is different from others. Is it possible that we have gone the wrong way? Do we need to reflect on ourselves?

Have you ever thought about the possibility that others are wrong and only we are right?

Refuse to reflect. We only admit objective data.

Industrial countries almost all have deficits, and only China has a surplus, which is really rare.

Once in a century, I dare not say, but I haven’t seen it in the past 30 years.

In recent years, we have been witnessing history, and today we have witnessed another one.

Open the door, we Chinese merchant ships come to free trade.

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