http://www.nytimes.com/reuters/2015/04/12/business/12reuters-china-economy-trade.html?ref=international
The trade performance left China with a trade surplus of $3.1 billion last month, much smaller than forecasts for a $45.4 billion trade gap.
"Chinese vice premier Wang Yang was quoted by Xinhua state news agency as saying earlier this month that authorities must act to arrest China's export slowdown lest it further dampens economic growth.
Wang was quoted as saying that local governments should offer "preferential policy support" and encourage more private investment in the export sector."
"Tepid growth in the trade sector could hurt jobs, which the government wants to protect for fear that widespread unemployment could fuel social discontent and trigger unrest."
2 comments:
This is probably to be expected with China as its growth potential and actual growth catch up with it. China retains some serious structural problems that will further hinder growth, but this downward spike in exports is likely just a market correction from the boom of the past decade.
China will definitely need to address a number of issues in the future to keep it's growth pace at the level desired by the government. Stimulating domestic consumption demand is definitely an important part of this. Large quantities of investment and rapid industrialization were strong contributors to China's growth in the past years. But that could potentially start becoming saturated without some rise in domestic consumption demand to go along with it.
Post a Comment