Can China fill the Vacuum?

[mumuy]

Many traders are skeptical that China might not fill the vacuum in case the US economy collapse, however this week several positive reports point in the stabilization and expansion of the Chinese economy which is the world’s third largest economy. According to an article made by Paxforex, Chinese policymakers said that China’s economy is stabilized but there are however willing to accept a much lower growth rate as it depends on investments and exports.

What are your views regarding this one? For more details also check these related articles on this:

http://www.businessweek.com/news/20...king-surges-back-as-growth-rebound-adds-risks

http://www.bloomberg.com/news/2013-...unds-in-further-sign-economy-stabilizing.html

http://www.ft.com/cms/s/0/62899c8c-0894-11e3-8b32-00144feabdc0.html

http://www.paxforex.com/forex-blog/china-points-to-rebound

 

[Hubu]

I don't think so. China's economy is completely different.One of the reasons of Chinese development is the artificial low currency price. If China wants to become leading economy, they will have to be playing the common rules. That might destroy them. Since they already have the overproduction crisis.

 

[JohnyStan]

I would agree too. I have friends from China, they were telling me that PRC are not able to export most of the goods and it is causing the major problems.

 

[Rambo35]

I think China already picks up the slack and is sure on on its way to do so much more. They are more and more focused on domestic consumption and while it will take more time they are doing the right things.

 

[mumuy]

I agree, China can't fill that void unlike the US markets can. Since China concentrates on their domestic consumption.

 

[Emibluz]

I think China would surely fill in the vacuum, and even more. From reports, China’s economic growth rate is on track to make its target of 7.5% this year. So surely the world should be anticipating an economic coup as China could soon overthrow the US. As it is formally known that the US is poised to overtake the US in e-commerce.

 

[Fxpipper]

Given the current economic trends, including development, looks like Chinese economy is on track. On the positive side, the services industry is seeing a boost - the challenge would be to keep it on track.

 

[T Spoon]

I think China already picks up the slack and is sure on on its way to do so much more. They are more and more focused on domestic consumption and while it will take more time they are doing the right things.

The problem with China's inner consumption is that the standards of living are very low and the retail market can't consume all the goods. Like there are currently the whole freshly built cities that nobody lives in since people cannot afford the apartment. So to rise inner consumption they have to increase the live standards, which will lead to increasing of prices for China's exports.

 

[Rambo35]

The problem with China's inner consumption is that the standards of living are very low and the retail market can't consume all the goods. Like there are currently the whole freshly built cities that nobody lives in since people cannot afford the apartment. So to rise inner consumption they have to increase the live standards, which will lead to increasing of prices for China's exports.

I think China has shown that they are able to raise living standards and while there is much more work that needs to be done, I think China will do so at their own pace.