There's no reason to panic over China's economic
slowdown. Contrary to popular beliefs, China is not the global engine of
growth; it is merely the largest arithmetic component of global growth. What
drives global growth is demand. China, with a large trade surplus, is not a net
provider of demand to the world.
What matters to the world, in other words, is not
how fast China grows but rather, how its trade with foreign partners evolves.
If China rebalances in an orderly way, its imports of manufactured goods and
services should rise faster than its exports. This will be good for the world.
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