Comments on: Could a US recession be good for China?

By: julie.lin

julie.lin — Sun, 17 Feb 2008 13:22:06 +0000

yes i agree with jon lau that it would have a negative effect on china’s economy, since about i dont know how many percent of chinese goods are exported to the us and they build up to be a huge factor of americas market

By: Jonathan Lau

Jonathan Lau — Sun, 17 Feb 2008 08:59:54 +0000

I am pretty sure a recession in America would have a negative effect on China’s economy. Since China relies so much on America for its exports, a recession would surely decrease the amount America imported from China. In addition, as stated in the article, about 10% of China’s national income comes from US household’s demand for good, so China would definitely feel the effects of a recession in America.

By: Howard Lin

Howard Lin — Thu, 14 Feb 2008 12:43:05 +0000

Speaking of the business cycle, its kind of scary to think that China’s economy will decline at some point in the future…
Where will the next land be for the business men to explore? Perhaps India, or Africa.

By: Chris Seah

Chris Seah — Thu, 14 Feb 2008 05:12:18 +0000

This is an interesting scenario. Historically, the Chinese economy has been extremely durable: case in point, the 1997 Asian Financial Crisis. If you look at any of the widely available graphs on the matter, the Chinese economy’s growth was only slightly dented. This is nevertheless a negative effect and China’s economy will nevertheless be affected as such. On the other hand, this slide in the US’s performance bodes will for those here in China who want to buy American-made goods since these events aren’t exactly helping the dollar.

By: Caleb Liao

Caleb Liao — Thu, 14 Feb 2008 03:06:58 +0000

I think that the U.S. Recession will not be too detrimental for the Chinese economy because other nations with large economies are too, heavily invested in Chinese markets. For example, Germany has many investments in China. So although there will be some dip in the economy, I find that the recession in the U.S. may not hurt China too much, and in the long run may strengthen because of the opened road to grow while one of the largest economies is shrinking, in ways that are not tied to the U.S. economy.

By: jenniferchoi

jenniferchoi — Wed, 13 Feb 2008 21:39:57 +0000

I think it is good that China wouldn’t have to suffer too much from US recession. Even considering the large population here in China, I think it is suprising that China’s domestic demand can support US recession since a large portion of China’s GDP comes from exports.

By: Cassy Chang

Cassy Chang — Wed, 13 Feb 2008 16:27:03 +0000

I think it’s bad for people in China who are exporting goods to the US, since if they get paid in US dollars, they are losing money due to USD’s depreciating value.

By: Hansen Gu

Hansen Gu — Wed, 13 Feb 2008 16:07:46 +0000

“This means that something like 10% of China’s national income comes from US households’ demand for Chinese products.” 10% is no small number. There will definitely be a leash placed on China’s growth. I do not think the economy can overly benefit from the recession of the US economy. As aforementioned, the global market is as the name suggests intertwined. The Chinese economy, albeit just 2 points predicted slower growth, will feel the tug.

By: Kai Lin Fu

Kai Lin Fu — Wed, 13 Feb 2008 15:29:03 +0000

Yes, a U.S. recession would definitely effect the Chinese economy since it is heavily depended on its exports. However, a recession affects different goods,which means its nondurable consumer products are insulated from it, cushioning the blow.

By: Jessica C.

Jessica C. — Wed, 13 Feb 2008 13:40:22 +0000

As I’ve lived in China for almost 15 years now, I’ve noticed a significant change: Chinese people are getting richer!! Of course, the economy is booming and all is going well…so far. A recession in America would probably affect almost all nations negatively because it is one of the world’s leading economies right now. China’s economy still has a lot of potential for growth, and until it reaches that peak, it will continue to grow.

By: robertwang

robertwang — Wed, 13 Feb 2008 13:14:54 +0000

I think a lot of the effects on China’s economy will have to depend the timing. We all know China’s economy is going to hit the inevitable recession, but if China passes through it’s peak while American is in it’s expansion period, wouldn’t America’s demand for Chinese goods increase again, thus decreasing the effect of the recession on China (possibly even decreasing the length of the recession?).

By: Michael Daily

Michael Daily — Wed, 13 Feb 2008 12:43:25 +0000

Although the US recession could help the Chinese economy, it has already been shown to slow growth. As the article mentioned China won’t suffer too greatly because of its strong domestic market but exports are still a big part of Chinese economic profits. And I understand China will at some point reach a recession, but I think that will take a lot longer to happen because as the US recession shows, China’s economy is still expanding significantly.

By: Mond

Mond — Wed, 13 Feb 2008 12:33:17 +0000

A recession in the US could be beneficial for China. It would slow down China’s amazing economic growth rate, to relieve some stress and damages that has been caused by this high double digit growth rate. The most evident effect of this high growth rate would be increased production of goods, which also yields more pollution. If the growth rate slowed down a bit, the government could have more resources and time and attention to spare to deal with these environmental issues.

By: Jo Lo

Jo Lo — Wed, 13 Feb 2008 12:02:30 +0000

Without reading the article, and just looking at the title, one can easily state that a recession in the US will negatively affect China in the short run. Still though because China is growing at such a quick pace, the recession will not bring the economy to a stop but will decrease the rate in which the CHinese economy is growing. With or without the recession China will still have a robust economy.

By: Trevor Sun

Trevor Sun — Wed, 13 Feb 2008 12:02:10 +0000

I agree that China’s economy will be negatively impacted if the US goes into a recession. Like others have mentioned, everyones economy is linked and therefore impacted by one another. How much they are impacted I wouldn’t know.