Reports from the U.S. government this week have revealed a significant development in the global economy: China has now surpassed the United States in terms of total trading volume. According to the Bureau of Economic Analysis (BEA), this event occurred 2012, when the United States engaged in $3.82 trillion worth of trade while China reported an amount of $3.87 trillion.
Various news sources, including Bloomberg News, interpreted the change as long-term side effect of the decline of manufacturing in America versus the significant increase across the Pacific. One economist pointed to the relationships China has cultivated with other emerging and developed nations as one reason how this trend has developed.
“For so many countries around the world, China is becoming rapidly the most important bilateral trade partner,” Jim O’Neill, a developing economies expert at Goldman Sachs, told the source. “At this kind of pace by the end of the decade many European countries will be doing more individual trade with China than with bilateral partners in Europe.”
The BEA’s data showed a wide disparity between the amount of goods shipped by the two countries. The United States experienced a dramatic trade deficit of more than $700 billion, whereas China reportedly had a surplus of $231 billion during 2012. This numerical divide could grow in the coming years, some experts say, as China continues to invest in its manufacturing base. However, other economists expect economic growth to slow in the Asian nation, which may lead to a rebalancing of trade differences in the coming years.
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