China surpasses the US as the world’s No.1 trading power

By | February 15, 2013

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China surpasses the US as the world’s biggest trading power

According to the U.S. Commerce Department, the U.S. trade volume in 2012 was U.S. $ 3.82 trillion. With the report release by the China Custom in January, the country total trade volume reached $ 3.87 trillion assisting China to surpass the United States as the world’s biggest trading power. The trading power dominance change could be seen from another set of data: Back year of 2006, the US was the top trading partner for 127 nations while China was the top trading partner for 70 nations; five years later in 2011, the trend reversed with China dominating trade of 124 countries and US topped the trade among 76 according to the Associated Press. The boom of the international trade of China is ensured by its continual domestic growth. In 2012, the annual GDP growth was 7.8% (8.1% for 1st quarter, 7.6% for 2nd quarter, 7.4% for 3rd quarter and 7.9% for 4th quarter) better than the market expectation 7.5%. According to economist, Qu HongBin, from HSBC in December 2012, “China’s recovery is gradually gaining momentum, although it remains in its preliminary stages” with PMI edged up a notch from its flash reading of 50.4 to 50.5 in November, the highest reading and the first above-50 reading in thirteen months at that time. Another trend supporting the Made-In-China brand with the background of slow recovery of US and EU economy is the ever strong economy and political tie between China and the rising Africa. In 2012, the trade between China and African probably hit around $ 220 billion with a year on year 25% growth.

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