Chinese exports plunge 26.4 percent in May

BEIJING (AP) -- China's exports plunged in May for a seventh month as the global downturn battered trade, while imports also dropped sharply, the government reported Thursday.

May exports fell 26.4 percent from a year earlier, the customs agency reported. That was sharper than April's 22.6 decline and far below March's 17.2 percent contraction.

Chinese trade collapsed in late 2008 as the global economic crisis cut into demand for Chinese exports. The slump forced thousands of factories to close and threw millions of migrants out of work.

Yahoonews

Global meltdown is starting to hurt China now, also.

The government is trying to shield China from the downturn by pumping up domestic consuption with a 4 trillion yuan ($586 billion) to pump money into the economy through higher spending on public works construction and other initiatives.

Sounds just like what the US/England.....have done.

China has severe issues of their own. I've noticed how people pleasantly ignore these facts in order to keep the Bash America band wagon going. China's growth over the past few years has been impressive, but they don't have the infrastructure and that makes them severely vulnerable to economic downturns. More so than the west.

China has made tremendous gains no doubt! I think people are over rating China's economic and political strength. Just like the other post about them requesting payments in yuan's. Some immediately pointed to that and said it was proof of their dominance or new power. Simply having them "Ask" to be paid back in yuan doesn't mean it will happen. Asking is one thing. Receiving them is a whole other ball game. Real power would be demonstrated if they "Told" The US to do so. 1.6 Billion people! If you divide their huge "Profits" Between the masses it dwindles down to nothing. Stay tuned.

China is not the great Dragon just yet more like a paper dragon. If they are not careful the whole smash can fly apart if they don't address the issues of the masses. All those "Millions" of migrants is just the tip of the proverbial iceberg. The Elite few may have the "Power" now, but once real openness and some small forms of democracy or open capitalism takes hold in the main land areas not just in "Isolated" Business sectors the Chinese will get change all right!

Not the change they are expecting or want. Remember when dealing with China in modern business matters Don't rely so much on their ancient culture but on the facts and weakness of their present government. It is what 60+ years young? Not much of a track record when dealing in global economic business matters.

Stay tuned.


Concerns About Cost of China's Stimulus Grow

BEIJING -- The cost of China's stimulus program is turning out to be much larger than official figures indicate, raising the stakes for the government's attempt to restart high growth through massive borrowing.


"There is no such thing as a free stimulus package. There is a huge amount of unreported government debt, and we're adding to it now clearly," said Stephen Green, an economist for Standard Chartered in Shanghai.

[edit on 11-6-2009 by SLAYER69]

Originally posted by SLAYER69
China has severe issues of their own. I've noticed how people pleasantly ignore these facts in order to keep the Bash America band wagon going.

Except they can cover their asses without getting into debt and inflating their currency.. unlike the US/EU.

No matter what happens, if the West turns itself around in the next 2 years, China will still not be a scratch on our economic and infrastructural development so we have nothing to worry about with them.

It would be handy to create a tight bond between China and the west during this crises.. in order to make sure we can all begin to make as much money as possible off each other as quickly as possible once the credit begins to flow again.

Originally posted by Dermo

It would be handy to create a tight bond between China and the west during this crises.. in order to make sure we can all begin to make as much money as possible off each other as quickly as possible once the credit begins to flow again.

The problem with that reasoning is that China is still a "developing economy".
World Bank Sees Economy Shrinking 3 Percent This Year

Underscoring the risk that hopes for a quick turnaround may be premature, the World Bank said Thursday that it expected the global economy to shrink nearly 3 percent in 2009, far deeper than the 1.7 percent contraction it predicted slightly more than two months ago.

Although the bank said that it expected growth in developed countries to resume next year, emerging-market countries could feel the effects of what it terms “aftershocks” for several years, as the full impact of the worst downturn since World War II becomes apparent.

So you all are saying it would not be a big deal if China stopped buying US treasuries? Cool!

reply to post by nydsdan


Eh? Not for every other country.. It would be a big deal for the USD.

Makes sense. U.S. GDP Q109 shows nearly 40% whopping decline in imported goods (ANNUALIZED - relax, it's not from previous quarter). Oddly enough this contraction in commerce is makes our GDP numbers look better.



Sorry for the img format, but it was the only way to get the whole image to show.

Source: www.bea.gov...




[edit on 11-6-2009 by Dbriefed]

reply to post by Dermo


Uhm.. the only reason China can export like they do IS BECAUSE THEY EXPORT THEIR OWN CURRENCY..

They have been doing it for as long as they have been shipping to the West.. they devalue their currency to make imports less profitable, and exports incredibly profitable.. If ANY other country in the world did this, a World wide trade embargo would be started by the following business day.

reply to post by Dbriefed


Not just look better it is better. China relies too heavily on exports so while everybody is tightening their belts and working from within China will have to go heavily into dept to keep the masses happy.

There is no colorful "Wal-Mart" rainbow going to bring a bag of shiny gold. Not for at least a year or more.