China tourism to flourish

China tourists to flood the world. (I think it should be billion USD instead of trillion USD)

China Trade Balance Soaring

I’ve been telling for years that China’s tourism sector has collapsed. Chinese people are now fueling their own domestic economy instead of spending their money abroad. This lead to a soaring trade surplus and the Chinese will now be gobbling up all the commodities with that surplus money.

 

China Services Deficit Shrinks Due To Tourism

China tourists stay home, which reduced the China services deficit. This actually led to a decrease in U.S. services trade surplus. USA just lost a customer.

China Growing Rapidly: Power Consumption Hits Record

 China power consumption grew by 7.7% yoy in August 2020.

Helped by Chinese tourists staying at home and using their saved money for themselves, increasing the surplus in balance of trade.

In this environment, the yuan will rise sharply and it is recommended to buy Chinese bonds and stocks. I recommend to put some money in CBON for example.

China Posts Record Trade Surplus

I’ve always said that China’s trade balance was positive. Since 2010, China’s tourism sector started booming and the trade balance went lower. But when the coronavirus broke out in 2020, Chinese tourists stayed at home and are now saving huge amounts of money and trade surplusses. I have a feeling that the Chinese will be buying commodities with their extra money.

The Reason For China Current Account Deficit: Tourism

China’s current account deficit is attributed to tourism. It’s not like China isn’t producing goods anymore, it’s just that China is now consuming its money and they go all over the world to spend their money, creating a services deficit.

 

But this services trade deficit is narrowing and the current account surplus is rising again.