Many in the West appear to want a huge China bubble to help pull the global economies out of slump. But as a capable manager of the economy, the Chinese government is too smart to do that. Cooling it down a bit is totally necessary. You don't want 10%+ somewhat superficial GDP growth. Still, China is going to get more than 8%, probably. Nothing to sneez at.
But to have a true recovery, China needs the US demand for its export, just as desparately as US needs external demand for its exports. The more trade the better.
Grew up in Guangdong, China. Went to USTC, and came to US to study Physics (UT-Austin), then Finance (UC, Berkeley). Worked at KMV, Moody's, DCI. Now does independent research and investment.
Haha~Happy New Year!
ReplyDeleteWhat do you think of Chinese government pushing up the reserve rate recently? Some people said it would slow down the recovery of American economy.
Many in the West appear to want a huge China bubble to help pull the global economies out of slump. But as a capable manager of the economy, the Chinese government is too smart to do that. Cooling it down a bit is totally necessary. You don't want 10%+ somewhat superficial GDP growth. Still, China is going to get more than 8%, probably. Nothing to sneez at.
ReplyDeleteBut to have a true recovery, China needs the US demand for its export, just as desparately as US needs external demand for its exports. The more trade the better.