The Simpsons go to China
From Springfield to Beijing!
China is undergoing a profound economic adjustment right now, away from one kind of growth model which relied on exports and investment towards another kind of growth model that is more balanced between domestic consumption and investment. And in the long run, that's going to be good. It's very disruptive. That being said, this is a transition that needs to happen. It's a transition that ultimately will be good for China, and it's a transition that's actually good for the rest of the world economy because it's really going to boost consumption from China.
That's - when the rest of the world looks at the Chinese economy, they shouldn't be so concerned about what the output levels or GDP levels are in China. They should care about whether China continues to consume. And China has produced more than it's consumed for years. It has all these reserves - $4 trillion worth of foreign exchange reserves. It can afford to consume more than it produces, so that's one thing that I think is actually going to be - this economic adjustment in China is actually ultimately going to turn China into a driver of consumer demand globally.
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