China has a trade deficit with Asia - Marc Faber

China has a trade deficit with Asia


Dr. Marc Faber Chairman of Faber Limited speaking to Mike Maloney about the chinese trade deficit with the rest of Asia , The dollar and of course Gold and Silver ....: ...what is happening is because the productivity in China has increased so much in the last couple of years they have become very competitive and so they have a growing trade surplus with the United States at the same time what has happened is if you look at the exports from Asia to the US then before in the seventies when China was still a communist country the big growth engines in Asia were Japan Taiwan and South Korea to some extent Honk Kong and Singapore these countries used to export to the US , now a lot of these countries are exporting components to China they are then processed in China and shipped to the United States , so whereas China has a growing trade and current account surplus with the US they have a growing trade deficit with the rest of Asia and of course because of the huge appetite for the raw materiel they have a trade deficit also with OPEC but you have to give the Chinese credit whereas the US has a trade deficit with OPEC over a hundred billion dollars the Chinese have a trade deficit with OPEC of only a 4 billion dollars because they're very good at selling goods to countries that supply them with raw materiel ....