China: Not immune to Western slowdown?

In China, Economy on 24/08/2011 at 8:31 am

China, the world’s biggest exporter and second biggest economy, is still booming. Its GDP is expanding at about 9% a year and since the 2008 financial crisis, China has helped keep the global economyfrom falling in a recession. But, as the BBC’s  Damian Grammaticas reports, China may not be immune if there is a new slowdown in the US and Europe.

S’poreans have two reasons to be interest in the issue. We depend on global growth and Temasek itself, TLCs, other GLCs (like Ascendas) and GIC have big bets on China.

  1. What I am most worried is lose yours win is mine.

  2. Obvious question, need to ask meh?? Europe is China’s biggest customer, followed by US. Why do you think China has kept on buying hundreds of billions of euros and sovereign euro bonds to support them? Even the CCP has become fedup with europe and criticised them in their official paper. At the end of the day, it is maintaining status quo and preserving social stability that is the over-riding focus of CCP. If big dislocations and retrenching of capitalisation and globalisation occurs, don’t be surprised to see China revert back to strong socialist and communist system to preserve the country. They will become more isolationist and inward-looking, just like in the old days and like US during the aftermath of the Great Depression. Countries like Singapore, Brazil, Indonesia etc will become collateral damage.

  3. China is smart … and they have a big country to boot. What does SG have? ermm … transhipment port; easily done in by a recession/depression. Casino; again discretionary consumer goods, easily done in during recession/depression.

    Quite worried for SG … hope when the bubbles burst we wun be caught with our pants down.

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