It's interesting to see one country speculate on the trade between another two. In the article "US says China is working towards rebalancing its trade" the BBC shows a optimistic side and suggests that cooperation is going well between the two countries. The article quotes another article from The China Daily Newspaper-
"China understands they can no longer depend on demand from US consumption being such a substantial contributor to growth," Mr Geithner said during testimony to the US Senate Foreign Relations Committee.
"They have no alternative but to shift their growth strategy to a growth strategy that relies more on domestic demand," he added.
"They are moving in that direction but it can't happen unless they let their exchange rate move too."
"China understands they can no longer depend on demand from US consumption being such a substantial contributor to growth," Mr Geithner said during testimony to the US Senate Foreign Relations Committee.
"They have no alternative but to shift their growth strategy to a growth strategy that relies more on domestic demand," he added.
"They are moving in that direction but it can't happen unless they let their exchange rate move too."
I guess it's nice to see other countries learning to not depend on America so much. The original article can be found HERE.
I was sure China had realized this along time ago, but China is right with the rate of their growth they need to expand their horizon's beyond the USA.
ReplyDeleteThe United States depends on China more than any other country. I sure hope this doesn't hurt us in the end.
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