Economic growth is a change in the level of real national output in an economy in a period of time. Recently, China experienced real annual GDP growth of 9.5% through 2018. From the 1970s, China has been having export-led growth. This means that their value of exports exceeds their value of imports, which is a key contributor to a ‘huge trade surplus’. They have been able to do so largely due to their ‘undervalued exchange rate’ and ‘cheap labour ’. When this is the case, foreign consumers would find Chinese goods relatively cheaper, and Chinese consumers find foreign goods relatively more expensive, having the above effect. Historically, China would have a trade surplus in goods, such as energy and natural resources, as they would first specialize in the primary sector of manufacturing, causing net exports to increase. As net exports is a component of aggregate demand, this signifies short run economic growth (since increased aggregate demand can enable increased real GDP, i.e. o...