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In recent years it has become the world's largest net capital exporter.
In America's case, much of the cheap money came from China; in Ireland's case, it came mainly from the rest of the euro zone, where Germany became a gigantic capital exporter.
The presence of American troops in the Gulf, though no longer on Saudi soil, reassures the Saudis and China, since it can bank on America's presence.As a net capital exporter with only a basic education system, Saudi Arabia needs foreign know-how and training more than it needs foreign cash for investment.
Korea is a major capital exporter with about 270 establishments currently in the U.S. that would be newly empowered to raid the Treasury and attack domestic policies using foreign tribunals.
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The rich-country capital exporters would invest less, but the income they lost this way would be more than outweighed by the additional income they received from investments abroad offering high returns.This is the simple theory of international capital flows.
But if the BRICs cannot export their way out of recession, the expansion of government is the main alternative to the slump being endured in those other big capital exporters, Germany and Japan.
"Japan is a big capital goods exporter, and there is a capital spending boom going on in China," Mr. Morgan said.
As a capital goods exporter, Germany had been one of the prime beneficiaries of credit-driven demand in China but this is now also reversing: falling property prices and credit growth are bringing forward China's choice between a slowdown towards a more sustainable growth trajectory and a continued credit-fuelled but unsustainable expansion.
If you're an importer or an exporter, capital is arguably your most valuable resource.
At such times in the past, exporters have understated export revenues as a way of exporting capital illicitly.
As a result, China has been a net exporter of capital for almost 20 years.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com