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Strategies & Market Trends : China Warehouse- More Than Crockery

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To: RealMuLan who wrote (2556)1/24/2004 9:10:38 PM
From: RealMuLan  Read Replies (1) of 6370
 
China-US: Double bubbles in danger of colliding
By Ian Williams

What happens when two bubbles collide? Do they both burst, or do they coalesce and become an even bigger bubble - which will eventually burst even more spectacularly? That is the question posed by the growth figures from both the US and China, whose growth rates are tied in ways that neither seems to want to admit too loudly.

Even before this week's figures on China's explosive 9.1 percent growth in 2003, which many commentators thought actually understated the reality, the United Nations' annual economic report had identified the People's Republic of China as the locomotive for growth in Asia (with a nod to India), and added that the US with its 4 percent growth rate will do the same job for the industrialized world. But once again, the question must be asked - will these two Chinese and US engines run in the same direction indefinitely, or will they begin to diverge? Indeed, even more scarily, will they have a head-on collision and involve the world economy in the mother of all train-wrecks?
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atimes.com
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