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Can China's economic policy be seen as neo-mercantilist?

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mandy-dai | Student, Undergraduate | eNotes Newbie

Posted October 31, 2012 at 8:22 PM via web

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Can China's economic policy be seen as neo-mercantilist?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted October 31, 2012 at 8:31 PM (Answer #1)

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It is certainly possible to see China’s economic policies as neo-mercantilist, though people in China might not agree.

Mercantilism was the economic doctrine that held that a country must export more than it imported in order to be economically strong.  Mercantilist countries tried to promote exports and reduce imports.  From the perspective of many Americans, China engages in such policies today.  Many Americans believe that China artificially weakens its currency so that it will be easier for Chinese firms to export.  China is also said to put informal barriers in the way of imports and to heavily subsidize exports.  All of these actions can be seen as neo-mercantilism.

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