A. do you think china is pursuing an economic policy that can be characterized as neo-mercantilist? b. what should the united states, and other countries, do about this?

A) With a trade surplus of $210 billion in 2006, and foreign exchange reserves of $1trillion, China has been criticized as following a neo-mercantilist policy. For years, China’s exports have been growing faster than its imports, and some critics suggest that China is limiting imports through an import substitution policy. Others have argued that China’s currency is too cheap, which effectively keeps its export prices low.

b) Students will probably suggest that the United States and other countries continue toput pressure on China to open its markets to imports or risk retaliatory measures. Somestudents may also focus on the value of China’s currency and argue that the U. S. needs to push for a revaluation