This article explains the Chinese trade numbers. During 2009, the Chinese commerce decreased constantly because of the world economic crisis, this led to a fall in demand for its products. But last year, China experienced a higher growth than expected, and became the world’s leader in exports, surpassing Germany to take the lead. Many producers in China are low-cost manufacturers that assemble equipment for iPods, for example, using foreign components.
From the economic statistics released last week by Beijing, there were some unexpected figures. Imports increased by 19.4%, and exports only 2.4%, which is the lowest increase since 2009. This leads to the biggest surprise, the $7.3 billion trade deficit, the first since last March. It’s even more surprising when you get to the expected numbers, experts were predicting a surplus of $4.9 billion. Some analysts, like Goldman Sachs and UBS, said that these unusual numbers are because of the Chinese New Year, which was on February, when a lot of factory owners and workers take some days off around these days.
But do you believe that this can have such a several effect on the exports? From the expected $4.9 billion surplus to a $7.3 billion deficit? Really?
One of the biggest factors of the big exports from China is the currency policy, which is very criticized by the other countries. The devaluation of the currency leads to increase exports. That’s not fair competition.
Carles
Let me add this graphic, it gets easier to understand the amazement of the experts:
ResponEliminahttp://es.noticias.yahoo.com/12/20110310/foto/pbs-evolucion-mensual-del-c-1-c9d8b5ec5552.html
I really think that the low-cost Chinese "bubble" will sooner or late desappear not only beacuse of its unfair Tactics to increase them exports but also because every day more Chinese people ask for better working conditions that sooner or later will affect the low prices of its products
ResponEliminaGood post and comment
ResponElimina