Tuesday, July 25, 2006

The Collapse Of China

Although Stephen Roach might not believe in 'China-collapse scenarios', it seems the Chinese do.

2 Comments:

Blogger Canadi-anna said...

Again -- I don't want to appear stupid for asking this question, but . . .
I thought a trade surplus is good -- are they saying that it isn't because it means if for whatever reason other countries stop buying from them or if other countries economies collapse?

25 July, 2006 18:44  
Blogger Martin said...

CA,

A trade surplus is good thing - but Chinese growth has occurred so fast, and is so heavily dependent on imported energy, that an oli shock could bring the wholething down.They need to cut their potential losses before then.

25 July, 2006 21:12  

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