China Trade Balance USD

China Trade Balance USD measures a change between exports and imports over a selected period, in US dollars. Economists use the indicator to evaluate the structure and intensity of trade flows between countries. Calculation of the trade balance in dollars allows to properly compare China's statistics with other countries.

The trade balance is considered an important indicator of development and the vector of trade flows.

A nation importing more goods and services than it exports has a trade deficit. For countries with highly developed economies it means that labor-intensive production is transferred abroad, thus restraining inflation and maintaining high standard of living. A trade deficit in these cases is covered by other methods of economic interaction, for example by issuing debt instruments.

When exports exceed imports, a trade surplus is formed. It is an indication of high production level. It also shows that the nation produces more goods and services than it can consume.

The impact of Chinese imports on yuan quotes is ambiguous and depends on the context of business cycles and other economic indicators, such as production dynamics. For example, in economy recession conditions, countries begin to export more in order to create jobs. Conversely, if the economy grows rapidly, developed countries prefer to develop imports in order to ensure price competition. This may influence yuan quotes accordingly.