EGS Global Business Blog

The U.S. Department of Commerce Department calculates that America’s service sector had a $3.7 billion trade surplus with China last year. In 2005 the surplus was $2.4 billion, up from $515 million in 1992. And by one measure, America’s service-trade surplus could reach $15 billion a year by 2015.

China is now the ninth largest purchaser of American services.

Service exports cover a wide range of economic activities, from parcel shipping to investment banking. Education is one of America’s top service exports with a $1 billion surplus. Advertising, technology, legal services, industrial engineering and other “business, professional and technical services” account for just over a third of the U.S. surplus. Financial services account for another $480 million.

Chinese payments of royalties and licensing fees to U.S. companies, generated a surplus of $1.4 billion in 2006.

Click on the Wall Street Journal article link to see the full story.

BBC Business reports that East Asia is set for strong growth in 2008 as domestic demand offsets high crude oil prices according to the World Bank says. China’s economy will grow by 10.8%, down from 11.3% in 2007.

East Asia, excluding Japan, is seen growing 8.2% in 2008 from 8.4% in 2007.

East Asia includes China, Indonesia, Japan, Malaysia, the Philippines, Thailand, Vietnam, Hong Kong, South Korea, Singapore and Taiwan.