Don't expect China to save the world from the financial crisis!

Don't expect China to save the world from the financial crisis!
Oct 13, 2008 03:07
FRANKENSTEIN Points: Join Date: Nov 29, 2004 Status: offline	Jimmy has started a thread to talk about if China will help US out of the financial crisis. Now I have found another news and I think you shouldn't miss it. According to the article, China won't save the world from the financial crisis. As you know, China has a large amount of foreign reserves and wealth fund and it has said that it is willing to do investment on Wall Street. However, it still keeps silence about if it will give a hand or not. At the same time, Andy Rothman, CLSA's chief China economist, said "there is simply no way that the Chinese Communist Party can restore confidence in American and European credit markets and there is no step that Beijing policy-makers can take to solve the liquidity problem in western banking systems." Source: Times. Here is the orginal article: http://business.timesonline.co.uk/tol/business/economics/article4912632.ece So what's your reaction to this article?

Oct 13, 2008 03:07

FRANKENSTEIN
Points:
Join Date: Nov 29, 2004
Status: offline

Jimmy has started a thread to talk about if China will help US out of the financial crisis. Now I have found another news and I think you shouldn't miss it. According to the article, China won't save the world from the financial crisis.

As you know, China has a large amount of foreign reserves and wealth fund and it has said that it is willing to do investment on Wall Street. However, it still keeps silence about if it will give a hand or not. At the same time, Andy Rothman, CLSA's chief China economist, said "there is simply no way that the Chinese Communist Party can restore confidence in American and European credit markets and there is no step that Beijing policy-makers can take to solve the liquidity problem in western banking systems."

Source: Times.

Here is the orginal article: http://business.timesonline.co.uk/tol/business/economics/article4912632.ece

So what's your reaction to this article?

Oct 14, 2008 19:00

MARRIE
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Join Date: Jan 7, 2008
Status: Offline

As number four economic power, Chinese export will be at high risk if she does not give a helping hand. This is a global system where China is a big stakholder. As for how China take approachs to furtherrance of investment in US market later, It's a learning experience and the first lesson from US is how to cope with crisis and how to be a cooperative global player. It's a win-win case.

It is nonsence for this economist to lift the thing up to ideology. What modern Chinese top leaders only care is if their policy can maximize long-term social wealth and people's well-being.

Oct 14, 2008 20:09

JIMMYB
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Join Date: Feb 7, 2007
Status: Offline

Well, it sounds that the western countries have been thoroughly despaired because China still remains silent on this issue. As for investing in US market, China has already learnt some experiences. The investment in US seems unsuccessful. Aftering suffering great losses from Morgan Stanley and Blackstone, China's State Investment Company has suffered huge losses from its investment in US currency funds. It is said that about 5.4 billion dollars has been restrained in US currency market. You see, no investment in US is successful. It is time for China to reconsider its investment in US market now.

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