Burton Mills - China Could Overtake US in Imports
Burton Mills economists say that if growth in its imports continues, China could become the world's largest importer by 2022.
A report prepared by Taipei, Taiwan based investment house, Burton Mills suggests that China could surpass the US as the world’s leading importer by 2022.
Over the past decade, China’s yearly average import growth was 6 percent higher than that of the U.S. If China’s expansion continues at that pace this year and decreases by 0.15 percent or less the following years, China will be on course to overtake the US as the world’s biggest importer within the next five years.
Economists at Burton Mills say that even a more conservative forecast would have China surpassing the US within eight years.
According to official data, China’s imports increased by 21.5 percent on a yearly basis last year. Currently, China is the world’s second-biggest importer and its biggest exporter. With a widespread recovery in global commodities and a more stable domestic economy, China’s economic outlook is looking encouraging.
China’s increasing imports will have global implications. The US is the largest importer for 36 countries and regions while China is the largest for 41 countries.
Burton Mills economists believe that China’s imports will probably continue to surpass exports over the next several years and will create more balanced foreign trade for the nation.
With China’s consumer market expected to become the largest in the world, the country will begin to import more consumer-related goods instead of the traditional industrial materials.
Burton Mills economists believe that China’s growing consumer driven economy will have a significant positive impact on the global economy.