US economy receives “unexpected benefits” from China's export wave

VTV.vn - As US policymakers worry about getting inflation back to target, they may get unexpected support from China.

View of a cargo port in Jiangsu province, China. (Photo: THX/TTXVN)

The world’s second-largest economy is struggling to stave off deflation, and recent data has shown some signs of optimism. Analysts say China’s weak price environment could help ease global inflationary pressures, indirectly supporting the US economy.

Brad Setser, a senior fellow at the Council on Foreign Relations, said China's surplus in manufactured goods has exceeded $2 trillion. This is equivalent to about 10.5% of the country's GDP and more than 2% of global GDP, far exceeding the combined surpluses of Germany and Japan at their peak. According to experts, this large supply of goods is putting downward pressure on prices in the world market, including the US.

China has also seen a sharp increase in exports to other Asian markets. China’s exports to the region this year are estimated to increase by $150 billion, double the $75 billion drop in exports to the United States, said Torsten Slok, chief economist at Apollo Global Management. Despite the decline in exports to the United States, global prices for Chinese goods remain low, helping to lower input costs for American manufacturers through indirect effects from international markets.

Source: https://vtv.vn/kinh-te-my-nhan-loi-ich-bat-ngo-tu-lan-song-xuat-khau-cua-trung-quoc-100251119091238912.htm