Thursday, March 3, 2011

If the U.S. economy is bound to be affected by the impact of a hard landing in China.

U.S. economy may fall into recession clouded over in the global economy, which is bound to impact on the Chinese economy. .Mainly from its direct impact on both trade and capital. .<P> First, trade. .United States China's second largest trading partner, bilateral trade in 2007 amounted to 302.08 billion U.S. dollars, an increase of 15%. .Worse if the U.S. economy will inevitably lead to a substantial decline in exports. .As exports in China's contribution to overall economic growth rate of more than 30%, the U.S. economic slowdown will have a direct impact on the Chinese economy. .</ P> <P> However, taking into account the characteristics of China's import and export trade, the extent of such adverse effects may be lower. .First, China's merchandise exports to the United States most of the low-priced products, when the U.S. economic downturn, the decline in public consumption, these commodities are likely to be more popular in the U.S. market. .Second, China's trade with the particularity that the "three to a meeting" (processing and assembling, processing with imported materials, processing and assembling imported equipment, compensation trade), such as processing trade remained the main form of China's foreign trade, accounting for .53.7% of total imports and exports. .This makes China's foreign trade dependence on the surface seem high, in fact, in the processing trade in China really benefit from some of the processing fees, and its a very small proportion of the total trade volume. .</ P> <P style=MARGIN: 0px> Second, the capital. .U.S. foreign investment contracts in the proportion of the national total in 2000 after experiencing a certain level of growth showed a declining trend. .So far, U.S. investment in China, the proportion of total foreign investment is not great. .If the U.S. economic "hard landing" of China's investment in U.S. companies may be reduced, which is disadvantage. .</ P> <P style=MARGIN: 0px> </ P> <P style=MARGIN: 0px> the other hand, the U.S. economy "hard landing", there will be a lot of money out of the United States, China, to seize such .the opportunity to take full advantage of stable development and potential market advantages, improve foreign investment environment, it may become unfavorable for the benefit of absorbing more foreign investment. .</ P> <P style=MARGIN: 0px> </ P> <P style=MARGIN: 0px> addition, from the indirect perspective, as the world economic engine of the U.S. economy if the "hard landing", the effects will undoubtedly be affected .world. .In fact, the ripple effect has emerged, the global economy have been slack. .</ P> <P style=MARGIN: 0px> </ P> <P style=MARGIN: 0px> China in the 1998 Asian financial crisis and global recession in 2001, has adopted a proactive fiscal policy to effectively prove to the world .their defensive capabilities, this time China could once again staged a "thriving" the myth, the United States in the attention, the world is also attention. .</ P>.

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