Meet The Biggest Trading Nation In The WorldFebruary 11, 2013 5:12 am
It is not the United States. Now you know that it has to be China. We spotted this stat today, that China surpassed the U.S. to become the world’s biggest trading nation last year as measured by the sum of exports and imports of goods (Source).
China’s total trade stood at $3.87 trillion, compared to the $3.82 trillion total trade number for US. How do we digest this stat?
We had recently spotted a stat showing the reach of capitalism in China – China is now the country with the largest income inequality in the world – . In China, the top 10% now take home nearly 60% of the income.
We are not implying that trade and inequality are related in any way, the bigger point is that China is evolving into a trade and business friendly nation. But there are many other implications of this fact – currency being the most important. China has been labeled by many as a currency manipulator – many people think that this is the single reason why China’s exports look so great. The largest trading nation in the world also happens to hold the biggest chunk of debt issued by – you guessed it – the second largest trading nation in the world. And China has its own problems with debt as well.
Remember, from a currency standpoint, US has some innovative thoughts floating around overall. They killed Gold long back, and have been printing some serious money in the last four years. What we are trying to say is this: China and US being the top two trading nations in the world, and China being a very important bilateral trading partner for many countries in the world – does not sound like a great positive for world trade. That might be a very harsh statement, but we are afraid it is closer to the truth than we think it is.