The worsening of China’s terms of trade will play a fundamental role in reducing its trade surplus in future
China’s 12th five-year Plan calls for a shift in the country’s economic model from export-led growth towards greater reliance on domestic demand, particularly household consumption. Since the Plan’s introduction, China’s current-account surplus as a share of gross domestic product (GDP) has indeed fallen. But does that mean that China’s adjustment is on track? According to […]