Add together the effect of increasing the amount of domestic value added to exported goods and the new destinations to which China is shipping them, and that could underpin export growth, jobs and wealth creation for another decade.
Often criticized for just being a nation of "assemblers," China has been increasing the value it adds to exports as more components are produced there.
The recent decline of Brazil's currency, the real, weakened much of the economy but added value to export commodities, especially soybeans, in the last two years.
A common practice in developed nations, for instance, is to have a Value Added Tax that provides manufacturers with tax rebates as an added incentive to export goods.
Tariffs, import restrictions and export subsidies add to total employment.
Add to that two main export sectors that are capacity constrained (fish and aluminium), and you get a performance that is not as favourable as you might have expected from external adjustment.Are there lessons for Europe?
Regardless of the root cause, net exports add to growth.
Moreover, just as expanding exports add to growth, burgeoning imports subtract from it.
This reform can only be done if it is passed quickly but implemented incrementally.It is fundamental, too, that this economic environment allows us to forge foreign partnerships so that Brazilian exports add to Brazilian growth.
To these enterprises, profits are unimportant.Since China itself will have little need for this unprofitable steel, it will inevitably add to the country's exports, further depressing world prices.
