Now shopping mall giant (Dalian) Wanda, owned by Chinaâs richest man Wang Jianlin, and Vanke, the worldâs biggest residential real estate developer, founded by the mountaineering-loving Wang Shi, have âstunned the capital markets,â in the words of Chinese news site The Paper, by announcing a âstrategic partnership.â.
The second macroeconomic consideration of increased imports is the impact on exchange rates. As we have shown in the previous section, as U.S. consumers increase their consumption of imports, the supply of dollars in foreign exchange markets rises.
If low wages abroad were driving the American trade deficit, the share of imports from developing countries should have risen dramatically in these five years. But as Exhibit II indicates, the share of U.S. manufactured imports from non-OPEC developing countries in 1985 (25.4%) was about the same as in 1981 (24.6%).