China depends on exports for 70% of its growth
From Peoples’ Daily:
In the first 10 months, China’s foreign trade volume jumped 24 percent year on year to 1,148.61 billion US dollars, making it a rare large country in the world so heavily dependent on overseas demand. The robust export growth shows the continued downturn of domestic demand, as well as the necessity to improve the domestic consumption environment and readjust export policy, the Beijing Modern Business has said in a recent article.
China faces a severe imbalance between its dependence upon overseas and domestic demand, it said. Over 70 percent of China’s economy now depends on foreign trade, which has been growing at an annual rate of over 30 percent for years. The retail volume of social consumer goods, however, is expected to grow around 12.8 percent this year, the fastest growth since 1997 but still much slower than that of export, according to a report from the Ministry of Commerce. The oversupply problem of some domestic industries is still rampant across the country, forcing Chinese manufacturers to put more focus on the overseas market.
Stay tuned. The moment exports catch a cold, China gets the flu.