This headline is useless to understanding a nation's economy

Assemble.png

The WSJ ran this headline and story today:

China reports biggest-ever annual trade surplus with the US: WSJ reports, China reported its largest-ever yearly trade surplus with the U.S. last year while its overall imbalance with the world shrank, potentially strengthening the Trump administration’s case for tougher penalties and other trade actions against Beijing.

The metric is useful for lazy politicians but is useless otherwise.

A trade surplus is a useless metric to gauge the state of a nation's economy, but it is a beautiful tool for pandering campaign rhetoric.

You need to remember, at its core China is an assembly economy. 

Thus China's economy is a prime example of the obvious statement that the whole is great than the sum of its parts. 

Most Chinese companies import components and materials from around the world and then assemble them into useful products for sale globally.

No R&D. No branding. No marketing. No finance. No software. No logistics.

All actives not measured by current trade surplus formulations.
 

Marc Ross

Based in Washington, DC, I specialize in thought leader communications and global public policy for public affairs professionals working at the intersection of globalization, disruption, and politics.

Clients hire me to ghostwrite, engage influencer networks, manage media relations, produce events, audit their communications infrastructure, consult on hiring, provide issue briefs and news generating talking points, as well as manage end to end communications projects where I assume a role of project leader and general contractor.

I work independently but provided access to a substantial global network of collaborators with expertise in websites, graphic design, audio, video, polling, data analytics, and research.

Using the latest tactics of an American political campaign with expertise shaped by being a practitioner of global business communications, I help clients tell their story and build trusted relationships with all necessary stakeholders.

Successful communications are all about STOCK = strategy, tactics, organization, consistency, and know-how.

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