China has a trade deficit in at least one sector...that would be agriculture...the link is to China Trade Study and a report from China Daily that discusses how "China has been restructuring its farming sector, putting more resources into labor-intensive products on which it has a comparative advantage, such as vegetable and fruits." The result of that restructuring has been that China has had to import greater amounts of crops that are produced by heavily mechanized processes such as grain and soybeans, leading to the imbalance in imports vs exports in farm products.
This restructuring is a logical move because it provides jobs for Chinese in the rural areas, which have not prospered as much as the urban zones during the past few years, and doesn't require much capital investment.
Perhaps this will undercut US farm companies that are using illegal immigrant labor...
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