China Overtakes US as World’s Largest Goods Trader

The world’s second largest economy, China, has most likely overtaken the United States as the world’s biggest trader in goods, based on 11 months of data from 2013. “Trade with the rest of Asia and increasing flows with the Middle East represent a shift in power away from the US, still the world’s largest economy,” reports the Financial Times. Chinese officials anticipate trade and the national economy to continue to grow based on the improving world economy, economic reforms, low commodity prices. China’s manufacturing focuses on high-tech electronics over textiles and commodities. Jamil Anderlini and Lucy Hornby note that reduced foreign investment could be a concern as “About a third of China’s trade involves assembly and re-export of components produced elsewhere, although that is rapidly dwindling as industries including automobiles and electronics move their entire supply chain to China.” The US continues to lead in services trade. – YaleGlobal