1. Trade surplus. The so-called trade surplus means that a country's total export trade in a specific year is greater than its total import trade, also known as "surplus", which means that the country's foreign trade in that year is in a favorable position. The size of the trade surplus largely reflects a country's foreign trade activities in a specific year. Under normal circumstances, it is not appropriate for a country to maintain a large foreign trade surplus for a long time, because it is easy to cause friction with relevant trading partners. For example, one of the main reasons for the market fluctuation of bilateral relations between the United States and Japan is that Japan has been in a huge surplus for a long time. At the same time, a large amount of foreign exchange surplus usually leads to the increase of local currency in a country's market, which is easy to cause inflationary pressure and is not conducive to the sustained and healthy development of the national economy.
2. Trade deficit. The so-called trade deficit means that a country's total import value is greater than its total export value in a specific year, commonly known as "surplus", which reflects that the country was at a disadvantage in foreign trade that year. Similarly, a government authority should try to avoid a long-term trade deficit, because a huge deficit will lead to the outflow of domestic resources and the increase of foreign debt. This situation will also affect the normal operation of the national economy.
Why is the trade surplus and the RMB not appreciating?
According to the theory of international economics, excessive foreign exchange surplus itself indicates that foreign currency pricing is too high, local currency pricing is too low, and local currency is facing appreciation pressure.
The trade surplus of 1 is not caused by the undervaluation of RMB: China's trade surplus is formed by the current international division of labor.
2 RMB appreciation does not help to reduce the trade surplus: in fact, since China began to implement the reform of exchange rate integration from 65438 to 0994, the exchange rate has been on the rise as a whole, and the trade surplus is increasing; In addition, the elasticity coefficient of external demand of China's export products is only 0.2, and exchange rate fluctuation has little effect on export demand.
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