Posted on 02/24/2010 11:26:44 PM PST by TigerLikesRooster
Feb. 24, 2010, 11:28 p.m. EST
China says it may swing to trade deficits in next six months
By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) -- China could post trade deficits over the next six months, as the export recovery remains weak while the trend of strong import growth remains intact, according to reports Thursday citing a Commerce Ministry spokesman.
Ministry spokesman Yao Jian was quoted as saying exports won't regain their potential growth momentum for two to three years, even though gains against year-earlier results were recorded for the past two consecutive months.
The Great Recession has caused a dramatic imbalance in the global economy. WSJ's David Wessel says countries in Asia are the new "haves," while countries in Europe are the new "have-nots."
The forecast followed analysts' predictions last year that China would begin posting a trade deficit in 2010, with January 2009 marking the peak of its surplus. See full story on China's projected trade gap.
Yao also reportedly said China remained committed to its stable yuan policy. He said it was wrong to blame the yuan's exchange rate for global trade imbalances, adding that Beijing's currency policy had acted as a key support for global financial stability.
He also urged the U.S. to show restraint when it comes to "protectionist" measures this year.
(Excerpt) Read more at marketwatch.com ...
P!
Uh oh.
Guys, this may sound good for us and American manufacturers, but what this really means is that the tap is about to run dry for US Treasuries. Watch out.
At 1.339 billion population, there are about 1 billion ChiComs who don't think they are "haves".
yitbos
The Chinese trade deficit tells us that consumerism is alive in China. But that’s impossible, because our economic wizards told us that consumerism won’t rise there.
...interesting?
I wonder when they’ll stop calling it “The Great Recession” and just call it what it is, “The Great Depression - The Sequel”.
What are they buying?
Cool. What face were they showing when this statement was issued?
Good. I’d like to get something more than 1% on my savings.
The China trade deficit tells us that the US consumer is tapped out while China is still ramping up for a boom that most likely isn’t coming.
China is an export dependent economy as are most of the developing countries. If you add together the consumption of BRIC, Brazil Russia India China, it adds up to one fourth of American consumption. Those countries need American consumption. If it doesn’t come back they will be in big trouble.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.