China exports like a trillion dollars of value more than it imports, and it seems to actively maintain this stance - Does it? And if so, why? My reductive ape-brain says if more goods are leaving your country than coming in, then other countries are accumulating actual goods, and your country is accumulating pieces of paper (or digital bits). Seems like a losing strategy.

Why not just make all the goods that your country wants (especially if you're an enormous country that can scale economies and has access to strategic materials like China) and then you'd have more stuff?

And how do currency exchange markets fit in? I thought exporting and importing and fluctuating value of currencies meant that it should all sort of 'balance out' in the end. Because prices of currencies change the value of export/import and consequently you'd eventually have a country that exports and imports the same value of goods.

Maybe I fundamentally misunderstand the purpose of trade. Or maybe I've been playing too much Victoria 3.

  • ednice
    ·
    edit-2
    30 days ago

    deleted by creator

    • ElmLion [any]
      hexagon
      ·
      2 years ago

      Why does China becoming the world manufacturer help? I can make the most popular restaurant in the world by selling free food, if I had enough capitali I could outcompete every other restaurant in the world, but I'm still not benefitting if I'm not getting in enough money to replace all the food I give away.