Richard Brubaker

China's Dependence on Exports: An Old Chinese Myth?

As metioned in my original posting, Jon Anderson at UBS was not trying to say that China is not dependent. Through his article he is trying to show that China has become less and less dependent on trade, and that unlike some have said, China will not simply implode should the US market retract.

With that said, a lot of the wealth in China is linked to trade and will continue to be so. Therefore if trade takes a big hit, there will be ripple effects.

Will it spell disaster for China? I think the answers is no. that perhaps 10 years ago China was much more sensitive, but that in the past 10 years China has built in some economic stability and dependence from trade that would allow it to weather the storm much better.

R
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