CHINA'S EXPORT MACHINE

Sun Bin makes the point that, given China's population, the size of its economy, and the size of the entire world export market, China's share of world exports is MUCH lower than the USA or Germany.

Our media give the impression that China is dependent upon exports for its growth, but this is not correct, according to a recent study by the McKinsey Company. Growth in exports contributed much less to China's GDP growth than traditional export measures have indicated.

Exports contributed about 19% to China's growth in 2008 and will contribute only 10% next year, if the current trend continues.. Read more...