WASHINGTON: China is exporting something new to the world economy: Fear.
Global investors are quaking over the prospect of a devastating slump in the world's second-biggest economy. And they're fast losing confidence that China's policymakers, seemingly so sure-footed in the past, know how to solve the problem.
The worst-case scenario is that a coll**ing Chinese economy would derail others around the world - from emerging markets in Chile and Indonesia to industrial powers such the United States, the European Union and Japan.
The free-fall in the stock markets, in the words of David Kelly, chief global strategist at JP Morgan Funds, is "Made in China."
This year, the International Monetary Fund expects China's economy to grow 6.8 per cent, which would be its weakest peace since 1990.
China, which was posting double-digit growth in the mid-2000s, is trying to engineer a daunting transition — from overheated growth based on exports and often-wasteful investment to slower growth built on consumer spending.
Official numbers show the Chinese economy grew 7 per cent from January through March from a year earlier. Yet there's growing suspicion that Beijing's statistics are failing to capture the extent of the slowdown: Auto sales, electricity consumption and construction activity are "all looking very weak," Kelly notes.
I think let it happen and let India rise because India can re assure the world that it will help prospering the world slow but for sure.
Weak China is good for us... Pakistan will also take a hit...
Not that simple .. China has large trade surplus accumulated for the last decade .. sitting in USA ...
Thank you,Make one wonder how can India rise when most of us don't even understand economics.
The fundamentals have to be strong. China has a lot of mature manufacturing processes. It will be difficult for India to compete directly in manufacturing. Now with excess capacity available, they will be willing to cut prices further.
In this world no one can rise on the ashes of others. Live and let live is the moto of this world.
NOW IS THE TIME FOR INDIA TO SHOWCASE ITS POTENTIAL. ALL SAID AND DONE, I THINK INDIA WILL BE LEAST AFFECTED AND WILL SURVIVE, AND SURVIVE WELL
Will china give money to Pakistan now??
I fully agree with you. India knows how to live within it's limits. Basically, India is self sufficient and, as the world condition is, there is no hope that oil prices will go up soon. India has the biggest domestic market and will not suffer, like many other countries.