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Politics : New FADG.
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To: kumar who wrote (50)5/13/2007 8:22:22 PM
From: HawkmoonRead Replies (1) of 4152
 
Kumar,

There's no doubt that a significant portion of China's economy is export driven. Fully 1/4 of their $2.5 Trillion GDP consists of exports.

usatoday.com

China's total annual exports soared 412% since 1995 to $762 billion last year.

Now.. of course, they purchase western goods to offset any major trade deficit, but it's still less than what they export.

Furthermore, what we export to them represents a far smaller percentage of our economy, than their exports to us.

And, of course, US consumer demand is driving this. But give us a major recessionary slump and the US consumer is going to put their wallets back in their pockets and hunker down.

Then who is going to buy those exports that represent 1/4 of China's GDP?

This is the way it always is with export driven economies isn't it?. Unless they are prepared to spur internally driven consumption (funded via internally driven production to meet that demand).

Hawk
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