China's incredible growth rate has finally shown signs of slowing down which has led people to speculate as to future of the Chinese economy. In particular this article, linked below
http://money.cnn.com/2012/02/07/news/economy/thebuzz/index.htm?section=money_topstories
highlights the slowdown of the housing market. Americans are very aware of the implications of a slowdown in the housing market. In addition, the article speculates as to the effect of reduced growth of the Chinese economy on the U.S.
This article made me think of the challenges facing the Chinese economy and how instability in the Chinese economy may create problems for the U.S. as China holds a large portion of our Treasury debt. Do you think that China will be able to transform from an export-driven economy into an economy that can rely on domestic consumption? Do you think that infrastructure construction may have had a hand in slightly embellishing the growth rate numbers? Will a lower Chinese growth rate really have an effect on the U.S. economy?
I expect the U.S. economy to take a small hit as China's economic growth rate slows down but not much....the U.S. economy can stand on its own
ReplyDeleteI agree with Jon. As long as the US's main relationship with China is the manufacturing business, I don't think this slight downturn should have a substantial impact on the American economy.
ReplyDeleteI think its only a matter of time until the Chinese economy slows down. There is no way that a country can maintain those high levels of growth over a substantial period of time. Whether it will affect the US economy is a different story. I think that it will affect the world because so many countries are tied up with China at the moment, and once their growth begins to fall I think people will begin to move towards India or the next hot spot to find their booming economy. However, China slowing down should be a concern for the US considering how much China owns of our treasury debt, and as we've seen debt is not something that you can pretend does not exist and power through like we have been for the past decade.
ReplyDeleteI agree, Sam. The important thing is to keep our manufacturing and trade relationship with china on good terms.
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