The export capital of the world is in for a long, slow slog thanks to weak trading partners in Europe and creeping protectionism in good ole free market America.
Over the weekend, China’s Commerce Ministry told the media that the country should prepare for declining exports.
Beijing has its work cut out for them. The country faces a dramatic changing of the guard within the higher echelons of government, amidst a stagnant global economy and anti-China sentiment in Washington.
China policy makers are trying to shift their focus inward, away from being an export dependent economy.
But they may have to shift into fifth or at least fourth gear instead of the usual second gear of the Chinese government.
Beijing intends to roll out fiscal and monetary policies to bolster exports, Zhong Shan, deputy minister of commerce, said during a forum in Beijing.. He noted that it will be difficult for China’s government to stabilize export growth.
That’s because much of the problem is simply out of their hands.
With the U.S. slapping tariffs on China solar panels and tires, and the European Union’s economy still trying to fix the south’s debt problems, China’s two biggest trading partners have basically put China on hold.
According to the General Administration of Customs, China’s exports declined 0.5% over the year in January, the first fall in more than two years.
During the first two months, Chinese shipments grew by 6.9% year-on-year.
The figures are far less than the previous year and they set a pessimistic tone for the whole year, Zhong said. From January to February of 2011, China’s exports rose 21.3% over the last 12 months.
forbes.com
Over the weekend, China’s Commerce Ministry told the media that the country should prepare for declining exports.
Beijing has its work cut out for them. The country faces a dramatic changing of the guard within the higher echelons of government, amidst a stagnant global economy and anti-China sentiment in Washington.
China policy makers are trying to shift their focus inward, away from being an export dependent economy.
But they may have to shift into fifth or at least fourth gear instead of the usual second gear of the Chinese government.
Beijing intends to roll out fiscal and monetary policies to bolster exports, Zhong Shan, deputy minister of commerce, said during a forum in Beijing.. He noted that it will be difficult for China’s government to stabilize export growth.
That’s because much of the problem is simply out of their hands.
With the U.S. slapping tariffs on China solar panels and tires, and the European Union’s economy still trying to fix the south’s debt problems, China’s two biggest trading partners have basically put China on hold.
According to the General Administration of Customs, China’s exports declined 0.5% over the year in January, the first fall in more than two years.
During the first two months, Chinese shipments grew by 6.9% year-on-year.
The figures are far less than the previous year and they set a pessimistic tone for the whole year, Zhong said. From January to February of 2011, China’s exports rose 21.3% over the last 12 months.
forbes.com
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