The Hindu Business Line : Can China become the new growth pole for Asia?
forget this nonsense of decoupling - 55\% of Chinese exports are to the United States and Europe, and a lot of China's imports are driven by reassembling those imports for export to the developed world. We slow, China slows, China slows, and so do all the other Asian economies. It's like a card house - knock out the bottom and the entire thing comes tumbling down.
o China is very clearly increasingly involved in a relocative production network with other developing economies in Asia, which has involved massive increases in imports from those countries, to be processed and then exported. However, the problem is that the final destination remains the North, and within that the US and to a lesser extent the EU.
If demand for Chinese exports from the US and the EU slows down, as will be likely with a US recession, this will not only affect Chinese manufacturing production, but also Chinese demand for imports from these Asian developing countries.
(Incidentally, this dependence also helps us to understand why Chinese government-controlled wealth funds have recently been so active in tryi...
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