China exports continue to plunge

[bemildred]

Source: al Jazeera

China's exports plunged by a massive 17.5 per cent in January, the biggest year-on-year decline in more than a decade and threatening more job losses in an already slowing economy.

The data released by China's customs agency on Wednesday showed a third consecutive month of declines after years of double digit increases.

January's decline against the previous year was much steeper than the 2.8 per cent contraction seen in December.

"The numbers are terrible. The environment is awful," Citigroup economist Ken Peng told the Associated Press.

Read more: http://english.aljazeera.net/business/2009/02/200921151044282316.html

[HereSince1628]

1. Learning the lessons of free-trade at the back of the book is not always pleasant

[pampango]

2. I heard this this morning. It's hard to believe that their exports were only down 17.5%

in January over January 2008. Perhaps the rise from 2.8% in December to 17.5% in January is an indication of the increasing seriousness of their problems. Maybe a bigger percentage of their exports are cheaper goods that people will still buy in bad economic times, rather than high-end items like cars.

[Possumpoint]

3. When You're

on a fixed income and you make many of your purchases at discount stores (WalMart, etc.). That level of stores give you little choice over made in China or not.

[msongs]

4. the bright side: trains no longer block the local boulevard as often as used to be -

between 6-8 am the railroad used to park its trains across the intersections for lengths of time, hardly ever happens anymore. all those containers labeled "china shipping"? practically never see any these days.

Msongs

[Javaman]

5. I guess china is learning what it's like to live during interesting times. nt

[Algorem]

6. it's like somebody ran out of money or something

Please,if you have any monies,please buy some poisonous Chinese stuff.Walmart's open.Go.Buy.The money will return to you.When your reincarnated as a rich Chinese dude or a Bush or someone like that.


Associated Press
Trade deficit drops to $39.9B; lowest in 6 years
http://www.forbes.com/feeds/ap/2009/02/11/ap6037984.html
By MARTIN CRUTSINGER , 02.11.09, 09:04 AM EST

...
The politically sensitive deficit with China continued rising in 2008, hitting an all-time high of $266.3 billion, the highest imbalance ever recorded with any country. The deficit with China has set records throughout the decade, triggering a political backlash with growing calls for trade sanctions against Beijing for what critics contend are unfair trade practices that have cost American manufacturing jobs.

Still, Chinese exports are not immune to the effects of recession. China's exports plunged in January amid collapsing global demand, according to customs data released Tuesday. Exports fell 17.5 percent last month compared with the year-ago period, and a sharper drop than December's 2.8 percent.

The Bush administration resisted pressure in Congress to brand China a currency manipulator, a designation that could lead to trade sanctions. However, Treasury Secretary Timothy Geithner told Congress last month that President Barack Obama believes China is manipulating its currency, raising the possibility that the new administration will take a harder line.
Comment On This Story

During the presidential campaign, Obama pledged to do a better job than Republicans at protecting American workers from unfair trade practices. There are concerns the U.S. recession and downturns in many other countries could lead to rising protectionism worldwide that will make the global recession worse...

[madrchsod]

7. 50% of the toy manufactures are out of business....

come on people keep buying chinese toys....we have to keep them employed

[4dsc]

8. 1930's anyone???

If you know you history of the last great depression, world trade fell along with millions of jobs..

[hunter]

9. China has plenty of consumers.

When China figures out how to turn their production capacity back to their own people... watch out.

The Chinese have developed a good understanding of Western monetary systems, now it's time for them to build an innovative monetary system of their of their own that will cushion their economy from the instabilities of their export market and provide a higher standard of living for their people.

The hard work, as in any economy, is in weeding out corruption and dysfunctional ideologies of the sort that brought down our own economy.

[pampango]

10. Great post. Not only do they have plenty of consumers, but they have more money

and capital than they had years ago coming out of the Mao years.

There's no reason to believe that they can't make the transition from an export-oriented economy to one like Japan where exports are still important but there is a large domestic base of well-off consumers as well. As you, they have to weed out corruption and dysfunctional ideologies (one party rule?), but every country has to deal with corruption and the over-concentration of power, including the US.

[ixion]

11. The environment is awful," Citigroup economist Ken Peng told the Associated Press.

he continued:

"so we're going to put the screws to our customers by jacking up interest rates and fees, and cutting credit lines."