As incomes in China grow, imports from other low or middle income countries rise faster than imports from high wage countries. China's trade surplus with the US exceeds 100 billion, but it runs a deficit with India.

China's trade surplus with the US exceeds 100 billion, but it runs a deficit with India.

Americans accumulated their trade deficits by living far beyond their means.

Japan s trade balance fell into deficit in 2011, for the first time since 1980.

But the downward trend in the trade balance is clear.

The recent downturn in France s industrial output has created large trade deficits, and is undermining the competitiveness of small and medium size enterprises.

BEIJING China registered a monthly trade deficit of 7.2 billion in March 2010, its first since April 2004.

Many emerging markets have run current account surpluses for the first time.

But what is that sustainable level of the trade balance and of the dollar?

The fall in the capital inflow would therefore bring with it a fall in the trade deficit.

The EU does have a bilateral trade deficit with China, but it also exports a lot to the Chinese market much more than the US does.

Second, to reduce the current account imbalances that have built up, demand has to shift from countries running deficits to countries running surpluses.

The other source of international reserves, tourism, brought in only 8 billion, down sharply from 12 billion in 2010. Egypt continues to import almost double what it exports, resulting in a trade deficit of over 10 billion by the end of 2011.

Indeed, few believe that the rapid economic growth and high trade deficits that Turkey has experienced in recent years can be sustained. Likewise, high GDP growth rates in Brazil and Argentina over the same period could soon reverse, particularly if global commodity prices fall not a remote prospect if the Chinese economy begins to falter or global real interest rates rise this year.

Egypt continues to import almost double what it exports, resulting in a trade deficit of over 10 billion by the end of 2011.

Indeed, few believe that the rapid economic growth and high trade deficits that Turkey has experienced in recent years can be sustained.

With the global economy recovering, China s trade surplus began to grow.

That country has a trade surplus. It exports more than it imports.

The United States trade and current account deficits have begun to shrink relative to American and world GDP.

So its trade surplus continues to soar at the expense of other countries.

This is the strongest decline in net foreign demand facing a single country, or, equivalently, the strongest increase in a country s net demand for foreign goods.

Thus, in order to keep the current account deficit stable, the trade deficit must shrink. And the only way for the trade deficit to shrink substantially is for net imports to fall, which requires either a relatively sharp decline in the value of the dollar, thereby raising import prices, or a depression in the US.

Twin current account and fiscal deficits (and or currency and debt maturity mismatches) were the rule.

Thus, in order to keep the current account deficit stable, the trade deficit must shrink.

Their reduced demand for dollars will cause the dollar to decline and the trade deficit to shrink. That reduced trade deficit and the resulting decline in capital inflows will lead to higher real interest rates in the US.

With foreign borrowing financing a yawning trade deficit, the US economy as a whole spent more than it earned, which both caused and hid structural problems.

But the eurozone can increase its inflow of foreign capital only if it has a current account deficit, i.e., if it increases its imports relative to its exports.

Low cost domestic energy could help to lower the trade deficit, spur investment, and decrease America s economic exposure to volatile oil exporting countries.

This makes the renminbi chronically undervalued and assures China of a persistent large trade surplus.

Its launch has sharply weakened the yen and is now leading to rising trade surpluses.

For starters, given the eurozone s huge trade surplus, doing so would incur strong international resistance.

Now, China is out competing everyone, racking up huge trade surpluses with the US.

The US current account deficit has been the most widely discussed indicator of global imbalances.

The large trade deficit and equally large current account deficit (which includes net investment income) implies that foreign investors must add 700 billion of US securities to their portfolios. It is their unwillingness to do so at the existing exchange rate that causes the dollar to fall relative to other currencies.

He refuses to note the renminbi s large real appreciation in recent years, or to acknowledge that, while changes in China s exchange rate may affect the bilateral trade deficit, what matters is America s multilateral trade deficit.

The large trade deficit and equally large current account deficit (which includes net investment income) implies that foreign investors must add 700 billion of US securities to their portfolios.

Germany , Europe s largest exporter, has a very large trade surplus with the rest of the world.

They would run down their trade surpluses and, in some cases, allow their currencies to appreciate.

Australia has been a particularly large beneficiary of Chinese growth, which is relatively commodity intensive. This has tended to increase metals prices, fueling Australia s large export surplus in metals.

Manufacturing production has plummeted, the trade balance has deteriorated sharply, and corporate bankruptcies are increasingly frequent.

The arithmetic of global trade implies that the sum of all trade deficits equals the sum of all trade surpluses. If some countries, say, Japan and China, insist on running huge surpluses year after year, then other countries must run deficits.

Trade and immigration (legal and illegal), if left unchecked, will continue to exert downward pressure on rich countries labor markets.

The arithmetic of global trade implies that the sum of all trade deficits equals the sum of all trade surpluses.

China has yet to discover and adopt an alternative growth strategy that does not rely on a large trade surplus.

Why can t the US current account deficit remain at its 2006 value indefinitely?