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Is China a Neo-Mercantilist Country?
Exports are largely responsible for China’s recent rapid economic growth. The country, capitalizing on its cheap labor force, has focused on converting raw materials into products that are exported to developed countries like the United States. In 2008, China’s trade surplus was a record $280 billion before dropping to $155 billion in 2011. Even so, some critics have suggested that China is following a neo-mercantilist policy.
Question: Are the claims that China is following a neo-mercantilist policy valid? Why or why not?
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