Haunting's economics blog

[haunting]

Here's a very interesting table published by DBS. Although it centres around the Asian countries, still there's enough other info to make it worthwhile for an analysis...

1) for China, note the US+EU still contributed to about a quarter of China's exports, almost halved compare to Pre-GFC's level, but still substantial. My read from here is this - at its lowest and worst moment, both these regions US+EU were still in need of Chinese imports. They couldn't do without them Chinese goods. Which is a good news to China and to the Asian countries that supply intermediate goods to China. It is also a good news for Australia that supplies the raw materials to China.

2) for the rest of the Asian countries, this table shows the declining influence of the US economic power, replacing by China. Between EU and the US, EU is doing better in both HK and S.Korea - quite revealing from the super power's angle.

3) HK's 48% increase should be discounted due to "entrepot" effect (for China). This means China's 62.4% increase could be higher...

4) more... when time allows.

 

[haunting]

GM to form China venture, invest $293 million

** as if to augment the argument on zombie suppliers in the US, this GM move will be a thing to come as more and more big manufacturers shift their production offshore driven by cost as well as capital resources, plus the lack of local small to medium suppliers as a result of the meltdown.I

In this case, it is quite natural for GM to expand their parts production in China to provide their other US brands...

They said the market moves like a Titanic, once set on a course, it would take a lot to turn it around. But comparing with a whole economy and its eco system, the market movement is like a small pea, it ain't nothing comparing with the movement of an economy... from now on, the Americans could/would spend the next 20 years fighting to turn their Titanic heading back home, but if history is a good guide, and if the once Great British Empire is a good example, the USA and her associate client nations will become the next Commonwealth, a legacy of a once great power...