Negative effects - China's Influence on World Trade

Negative effects - China's Influence on World Trade - 1....

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1. Increased imports from China partially reflect decreased imports of the same goods from other countries, instead of a net increase in a country’s trade deficit. For example, US imports from China replace imports from other countries rather than add to total imports. Indeed, although the share of U.S. goods’ imports from China has increased since 1990, the total share from the Pacific Rim (including China) has actually fallen. This means that there has been an even greater decline in the share of U.S. imports from Pacific Rim countries other than China (Chart 4). That is, imports from China compete most directly with goods produced in other Asian countries. 2. Some are viewing China’s foray into undeveloped countries as an interest that is exploiting them, just like everyone who came before. It is thought to have simply come to take the place of the West as the new colonizers of regions such as Africa. 3. Taiwan’s recent success with the Caribbean island of St Lucia in establishing trade ties irked China so much that it promptly withdrew its embassy and cut aid to the island. China has threatened to do the same in Africa where only a few countries now
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Negative effects - China's Influence on World Trade - 1....

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