Whiplash

SCMP:

China’s economy is in a sweet spot – for now. Its foreign exchange reserves have been expanding in the past six months, hitting a whopping US$3.6 trillion. The economy grew by 6.9 per cent in the first half of this year and the yuan has been rising steadily against the US dollar. After several years of declining shipments, China’s trade has rebounded, thanks to strong demand at home and abroad. July exports rose 7.2 per cent from a year earlier and imports expanded by 11 per cent. Both are below analysts’ consensus

One day it’s Ponzi, and then “sweet spot” — it’s enough to give you whiplash. The funniest bit is that 7% and 11% growth rates are “below expectations.” Ask Germany, the UK or the US about that.

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