This is a translation of the original article in Portuguese. Read the original (Português).
China’s trade surplus has surpassed the US$1 trillion mark for the year to date, according to the Spanish newspaper Mediterráneo. The result was driven mainly by semiconductor exports, which grew 137% in October compared with the same month a year earlier.
Total exports also accelerated. In October, Chinese sales abroad rose 35.2% from a year earlier, according to the newspaper.
A trade surplus is the difference between what a country sells to and buys from the rest of the world. When that balance passes US$1 trillion, it means China has sold far more abroad than it has imported, building up an advantage rarely seen in the global economy.
The weight of semiconductors stands out. Chips are components used in nearly every electronic product, from cell phones and computers to home appliances and vehicles. A 137% jump in sales of this item in a single month indicates that China’s industry has expanded its presence in a sector that many major powers consider strategic.
For other countries, including Brazil, China’s export strength has two sides. On one hand, Chinese products reach the market at competitive prices, which can make goods cheaper for consumers and inputs cheaper for companies. On the other, the competition puts pressure on local manufacturers, who must compete with imported goods both at home and abroad.
The movement also affects production chains. When one country concentrates the manufacturing of essential components, such as chips, industries in other parts of the world become even more dependent on its suppliers, and any change in price or supply spreads to final products.
October’s performance reinforces China’s role as the main engine of world trade and is likely to fuel debate among governments about how to balance access to cheaper products with protecting local production and jobs.
Reporting from Mediterráneo (p. 34, Pequim (China)).
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