Sunday, April 11, 2010

"China Loosing it's Own Game"

China is the world's number one exporting country. Nevertheless, China reported for the first time in six years, a trade deficit. This means a negative balance of trade since China's imports exceeded exports, surprising many people around the world having China failing in it's "own game."
China is considering to keep the yuan stable, despite the United States is pressing China to reconsider it. However experts say this problem is transient and very rare. It is not a sign of recession. However, China's leaders want to be sure of the exports recovery before considering the removal of the anti-crisis policies, such as the freeze of the yuan's exchange rate against the dollar.
Even thought Chinese goods are very demanded, some countries have decreased the demand of some products because China has increased some prices, and decreased the prices of very demanded products. The question is, Is this the crisis blow to China? I think it is, since the world is buying less because of recession, but it looks like the government has taken the aproppiate measures in time and is being careful, meaning China will probably stand on it's feet soon.

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