This news story has 7 comments:

Register or Login to rate comments »
•  
  

  • Drew Arnold: 
  • Comments (162)
  •  • Instablog (17)
  •  • StockTalk (11)

  • •
  • Markets Behave
  This throws a huge wrench into the spokes of the global recovery story, a story that I've been subscribing to for the past several weeks. China is supposed to be providing the demand that the rest of the world is lacking, but if they're only going to allow that demand to be for domestic goods, then the rest of the world can't benefit. Demand has to come from somewhere...this might cause the world to have to look elsewhere.

  Jun 16 02:27 PM | Link | Reply
•  
  

  • Phiota: 
  • Comments (19)
  This policy will probably be officially reversed in the next few days but in reality it will not be since the message has already been sent and received down the command structure. The local officials will know that it is to their own benefit (politically) to purchase China made goods.
  
  Expat in China

  Jun 16 02:42 PM | Link | Reply
•  
  

  • Walt17: 
  • Comments (96)
  It's called payback! The buy local originated in Washington. Several countries threatened retaliation. China is just the first to carry through on the threat. There were warnings that the "buy American" our politicians pushed could have unwelcome consequences.

  Jun 16 03:08 PM | Link | Reply
•  
  

  • zio: 
  • Comments (41)
  Well it is also true than China is going to buy more Porsches than Germany. The living standards there are far away from American and European ones, so whatever they will buy it will be good that they buy something and they will be no longer too much rural. There are things that they don't produce. And there are also things where increasing internal orders will be in any case good for us (for example, I am thinking about solar: several China provinces are starting to place huge solar orders: this drives down the costs for all purchasers due to the economy of scale). It is over one billion people and the reality is complex. If they are improving it is because they work harder. They deserve this. Rather than complaining, we should innovate and work more - it's a sort of Chinese stimulus, a sort of challenge. Are we rat, or we can take this challenge?

  Jun 16 03:22 PM | Link | Reply
•  
  

  • CautiousInv...: 
  • Comments (1173)
  •  • Instablog (46)
  •  • StockTalk (19)
  This could easily backfire.
  
  As a mercantilist country with a low-cost workforce, China tends to import what it needs: raw materials, commodiities, livestock feed and some value-added products. Its exports, which are much larger in value, tend to be finished products and are far more discretionary in nature than its imports.
  
  So, China will continue importing while exposing its exports and current account surplus to buy China rhetoric and risking global trade restrictions. Not smart.

  Jun 16 03:42 PM | Link | Reply
•  
  

  • nova: 
  • Comments (569)
  Communist Chinese government put their national interests [as they see them] well above everything else. To expect anything else is just stupid.
  
  As of now, China is coming to a conclusion that bailing out the USA is NOT in its national interests.
  
  As of now, the USA is in a major political, economic and geopolitical crisis. Both Bush and Obama administrations recklessly and very foolishly assumed that America road to a recover can be achieved exclusively at the expense of the rest of world.
  
  America's war of aggression against the Muslim world clearly ruined its economy and has shown limitations of its military capabilities. It is just a matter of time when EU and US national interest will start to depart big time. Asia is on its way to openly challenge America interests all around world.
  
  America's road to a recovery requires putting its own house in an order. Unfortunately, the is no any sign of it.
  
  It is incredible but Obama administration behaves as if there is no any crisis at all. It is more interested in its social agenda than in anything else.
  
  

  Jun 16 05:27 PM | Link | Reply
•  
  

  • Sam Liu: 
  • Comments (49)
  •  • StockTalk (1)
  no country is responsible for reckless, irresponsible spending. in theory (that is with an open capital market), this"buy china" initiative will put costly pressures to maintain its peg

  Jun 16 06:34 PM | Link | Reply