November 30, 2007
China's New Markets
Interesting notes over at Tim Johnson’s McClatchy blog on why China is just going to keep growing and growing and growing. He quotes a former Morgan Stanley economist:
Everybody in the world has too much money except the United States. Think about it. Even Russia has a $500 billion in foreign reserves. Even India has over, like, $200 billion in foreign reserves. India never had that kind of money before. This has very important implications for what happens next year. Emerging economies do not need to cut back. They can expand. […]
Even Africa has a lot of money. So emerging market trade in China is already half of China’s trade growth. As American consumers need to rest, need to pass, suddenly emerging market trade is happening. And emerging market trade is right up China’s alley because emerging markets export commodities, exactly what China needs — oil, copper, iron ore — exactly what China needs. And China exports cheaper consumer products and on top of that cheap capital goods, like pumps, like trucks…
This is truly the dawn of emerging market trade development.