Throughout this crisis, we've heard lots of pundits crying about how China's falling "exports" would crater the Red Dragon.
Right...and we've got a bridge in Mongolia to sell you.
What the panda bashers repeatedly fail to understand is that exports account for less than 20% of China's GDP. Not only that, but as I've stated in several interviews recently, it's what they import that matters most - especially when it comes to helping the rest of the world recover from its fiscal follies.
Not many people know this but China imports as much as $0.90 on every $1 they export which means that in contrast to spendthrift image promulgated in the ignorant western media, China is actually spending lots of money which is why any credible analyst worth his or her salt, if at least somewhat familiar with Chinese consumption patterns knows this by now.
Case in point, on Monday, Business Week reported that Chinese imports have increased 55.9% to record levels, which means that Chinese consumption is gathering some serious mojo exactly as we have suggested since the onset of this crisis.
The key point here is this - China is a whole lot more balanced and globally integrated than most people think.
Right...and we've got a bridge in Mongolia to sell you.
What the panda bashers repeatedly fail to understand is that exports account for less than 20% of China's GDP. Not only that, but as I've stated in several interviews recently, it's what they import that matters most - especially when it comes to helping the rest of the world recover from its fiscal follies.
Not many people know this but China imports as much as $0.90 on every $1 they export which means that in contrast to spendthrift image promulgated in the ignorant western media, China is actually spending lots of money which is why any credible analyst worth his or her salt, if at least somewhat familiar with Chinese consumption patterns knows this by now.
Case in point, on Monday, Business Week reported that Chinese imports have increased 55.9% to record levels, which means that Chinese consumption is gathering some serious mojo exactly as we have suggested since the onset of this crisis.
The key point here is this - China is a whole lot more balanced and globally integrated than most people think.
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