Comments on: China Exports, Imports, Economy Down

By: Drew

Drew — Wed, 10 Dec 2008 22:58:57 +0000

"However, it needs to be pointed out: China’s leadership doesn’t know how to cope with recession any better than ours does. Maybe even less since they’ve never faced one before."

Exactly correct. China's low currency value -export + invest excess savings a/c weak internal demand economic model is well known and has served them well for years.

But globally weak demand is new and a flumoxing event for China. And few appreciate the internal tensions China faces.

Worth keeping a close eye on. A real live powder keg perhaps?

By: Brian

Brian — Wed, 10 Dec 2008 18:59:54 +0000

It very well may be a while, but China may figure out yet that some things are too big to control.

By: Brett

Brett — Wed, 10 Dec 2008 17:49:18 +0000

They're already doing things like increasing export tax rebates and the like, designed to help exporters. I wouldn't be surprised if they did eventually devalue the Yuan.

Of course, the Chinese government (at least at the top) isn't a collection of idiots. They must know that if they try too obviously to export their way out of a crisis, it could cause protectionism.