A trading nation is an economically strong nation where most domestic commerce constitutes a high percentage of the gross domestic product. Trade is crucial to any nation’s prosperity and there are many nations with trading partners throughout the world. A nation that has an open market for foreign trade has the potential to become prosperous and the items that it manufactures and sells can fetch a higher price, which, in turn, can generate a higher profit. For example, the United States is one of the largest trading nations in the world and it exports a huge amount of dollars to its trading partners overseas. If that country were to abruptly stop trading with its trading partners, it would result in a severe hit to the gross domestic product – something no nation wants.
China is a great trading nation. It is the world’s second largest manufacturer of goods with the US as the biggest. In addition, China manufactures a huge number of goods that can be exported to the rest of the world, making it the single largest exporter of goods in the world. China also has a huge advantage over other countries when it comes to exports. China manufactures a high number of products that are made to order by their respective customers. Unlike the US, the Chinese government is very lenient towards its foreign trading partners, allowing them to purchase large quantities of Chinese-produced goods and reselling them at a profit.
However, China does have certain drawbacks. China’s government is constantly discouraging its citizens from engaging in currency trading, because doing so might make the people less dependent on Chinese exporters. On the other hand, the Chinese government is also promoting its local currency, especially the Chinese Yuan, as an international currency. So, while China is becoming a major exporter of goods, exporters from the US are trying to promote their products to the Chinese consumers.