China’s trade surplus misleads its Western critics | Reuters

Reuters:...Weijian Shan of Asia-focused private equity firm PAG, who believes, opens new tab Beijing could live with a 50% exchange-rate appreciation over five years, recently estimated Chinese manufacturing to be twice as productive as the U.S.'s in terms of physical output. High-tech exports are especially insensitive to currency prices.

Ultimately, China's surplus is confounding Western thinking. For decades, economists warned that East Asia’s state-directed investment and overcapacity would eventually hit a Soviet‑style wall, opens new tab and choke off innovation. Yet, while wasteful spending has abounded, it has also generated clear technological advantages for what is now the world's second largest economy.