A trading nation is generally a nation in which international trade constitutes a high percentage of its gross domestic product. This means that the items produced in that nation are exported to other nations. There are many different types of trading nations. For example, there are trading nations that are open to the importation of goods from other nations. These are called open trading nations.
There are also trading nations that are closed to the importation of goods from other countries. These are called closed trading nations. In a closed trading nation, international trade does not take place as freely as it would in an open trading nation. However, the level of commerce between the nations is relatively similar to that of a closed trading nation.
The United States is one such trading nation. We currently account for approximately 8.3% of the world’s total exports. China alone accounts for almost the entire share of the global export volume. If you just took our exports and those of the rest of the world and applied a tariff of one hundred percent to all of our purchases, you would immediately close our domestic markets to foreign trade. You would not be able to buy any goods from the United States, our suppliers would not sell to us, and we would suffer a severe hit to our GDP.
China is currently our largest trading partner. However, because of our current tax system, and the pressures that our government faces with regard to its debt and the impact on its currency, China cannot very well continue to accumulate its massive foreign exchange reserves. In fact, the Chinese government is now publicly urging its citizens to invest more in the United States and other westernized countries. China wants to help; but how can it do that if it cannot buy our products, and it has no interest in helping to increase exports to the United States or Canada. If China were a normal nation, it could buy a substantial portion of the U.S.dollars, but it cannot, because of the current political and economic environment in the United States.
So if you want to have free trade, and increase your country’s wealth, and improve the overall quality of life for all of its citizens, then you must not allow the unfair practices of the United States to affect your ability to participate in international trade. You must understand that you cannot continue to have unfettered free trade if your country is not going to have free trade. That means that you cannot continue to have a system where a nation that is exporting goods that it makes itself can undercut the nation that is buying those goods in order to protect its own interests. That means that you cannot continue to have a system where trading partners continue to take advantage of your country and its citizens. That means that you cannot continue to have a system where a nation that is a significant trading partner continues to take advantage of you.
Currently, the United States is still a very significant trading nation, but China is not. Right now, China exports about a hundred billion dollars in goods and services each and every year, and it has been doing so for some time. Therefore, China is in a position to buy all of the export goods that it wants, and continue to run a massive currency deficit, which means that they will continue to be a significant economic competitor with the United States. If you want to stop the current trend, and you want to make sure that the US remains the global leader in the international market for goods and services, then you are going to have to seriously take a look at how the trading practices between the United States and China are currently set up. Please consider this.