Comments on: Silver lining of US recession- more balanced trade

By: Dana Y.

Dana Y. — Sat, 12 Apr 2008 20:32:13 +0000

Many economists have speculated whether U.S. recession will bring “coupling” or “decoupling” changes in Chinese economy. Now that a few months have passed, the effects of plumetting Chinese stocks are becoming visible day by day. These patterns reveal that, although many have thought that “BRIC” countries would not be as severely affected by the U.S. recession, it has had great effect on the Chinese economy. Thus, I believe it is premature to say that China’s status as the rising economic superpower will guarantee a balance between Chinese and US. economy.

By: Jeff Ye

Jeff Ye — Thu, 10 Apr 2008 12:04:24 +0000

Going with previous responses, i agree that this will benefit China as a world power. Not only might it pull the U.S. economy out of recession, but it would also help balance China’s growth. Thus this would help out just about everybody.

By: Taryn

Taryn — Wed, 02 Apr 2008 01:02:50 +0000

I find it amazing how the American economy has the ability to “fix itself”. As the dollar value decreases, American goods will become less expensive to people in foreign countries and thus there will be a greater demand for the dollar which will increase the GDP in America and possibly help to not only balance trade in areas such as China but also to help America get out of its recession. I don’t believe that this can totally fix the” recession” but I believe it can help pull the lowering economy back up a bit.

By: Kai Lin Fu

Kai Lin Fu — Thu, 20 Mar 2008 12:07:45 +0000

This is will definitely have a positive step. It;s just like what Julie said, China will be more independent. This change may be just what society needs. It will help slow down and balance out China’s rapid growth in economy

By: Jessica

Jessica — Tue, 18 Mar 2008 15:40:07 +0000

Wow I never thought about this. I guess it’s good that China and the US are slowly balancing out. If the US dollar continues to fall, will the two countries eventually reverse their roles? Wow. Wouldn’t it be really strange to have America exporting all goods and China buying everything? Everything would be “made in america” instead of “made in china.” Haha. Oh well. I highly doubt this will happen anytime soon, if ever.

By: julie.lin

julie.lin — Tue, 18 Mar 2008 15:23:29 +0000

this will help china to stabilize china’s economy in the long run, as everyones saying, and i think that china will become more independent of other countries and more purchases on imports.

By: Cassy Chang

Cassy Chang — Tue, 18 Mar 2008 15:03:42 +0000

It is a positive effect on global economy, since more american export counters, if only minimally, the recession in the us, while at the same time slows China’s inflation rate.

By: Trevor Sun

Trevor Sun — Tue, 18 Mar 2008 14:06:49 +0000

I agree with mond in that China should become more independent. However, I don’t think this change will come about quickly. Plus stopping exports to other countries is good either.

By: Mond

Mond — Tue, 18 Mar 2008 12:34:57 +0000

I agree with what is being said. This is a good thing because it teaches China to be less dependent on other countries. Thus, creating a more stable economy in China.

By: caleb

caleb — Tue, 18 Mar 2008 12:18:13 +0000

I agree that this will improve both countries in the long run, but I don’t for a second believe that America will be replaced anytime soon. China’s present growth should not lead us to assume that China’s anywhere near the United States.

By: Howard Jing

Howard Jing — Tue, 18 Mar 2008 11:29:49 +0000

As everyone is saying, although having less foreign imports will hurt China in the short run, being forced to focus on its domestic population will only help China in the long run.

By: Michael Daily

Michael Daily — Tue, 18 Mar 2008 09:33:45 +0000

Yeah, this re-balancing act seems rather interesting. I mean countless American products are “made in China.” But now for the Chinese they should be seeing a lot more American products. So I guess their is some what of a benefit for America with the declining value of the dollar. It seems weird that Chinese stuff will be worth nearly the same as American stuff, but if the dollar continues to get lower it may actually get pretty close. So maybe America isn’t in the best of situations for the economy currently, but at least they may help some aspects of the global economy, like China’s.

By: Christina Hu

Christina Hu — Tue, 18 Mar 2008 08:56:11 +0000

I think this act is aptly named- rebalancing. I think it’s quite apparent that China does depend too much on U.S. exports, and is growing at a hyp, and, like Jack mentioned, perhaps too fast for its own good. A recession in the US, a decrease in the demand for Chinese exports, will force China to become more independent and to rely on its own consumers to keep the economy growing. This will also slow down what looks like demand-pull inflation.

By: Jo Lo

Jo Lo — Tue, 18 Mar 2008 08:16:25 +0000

Since China is trying to prevent an overheating of the economy, this rebalancing will help it. As US imports decline, exports will rise as a result because with the greenback lower in value than before, foreigners will want more US products. This will help China because the country will probably spend a little more on imports, thus h elping to prevent the overheating.

By: Margaret Liu

Margaret Liu — Tue, 18 Mar 2008 00:49:30 +0000

This rebalancing would probably seem ideal to china as well, since it’s already trying to dampen its booming economy by increasing the reserve ratio.