Monday, November 28, 2011
China within the global crisis
China's Vice Premier Mr Wang issued a bearish forecast, saying he is "certain, among all uncertainties" that a long term global recession is going to happen, that it will be "chronic" and China, which relies highly on external demands, must see the situation clearly and focus on domestic problems (Reuters)
China will have to move on its own and not be dependent on global growth to drive their domestic growth.
This is a strong comment from China. It suggests that domestic growth will be a priority since there is a strong likelihood of global recession. Will this mean a more isolationist economic policy? We will have to see, but the three pillars of economic growth, the US, the EU, and China all look weaker than six months ago.