China could soon learn the hard way that it's not easy being the largest exporting nation if the rest of the world can't afford to buy its products anymore.
To be sure, the cheap goods that pour out of the Asian nation continue to undercut the homegrown wares of most other countries. But there could be a point when weakened demand on the part of China's global consumer base starts to be felt on the assembly lines of Shanghai.
Just yesterday, America's Federal Reserve Bank pledged to keep interest rates at rock bottom for at least another year. The Fed's action is the latest acknowledgement that the West is saddled with near-unmanageable debt. The purchasing power of Western consumers isn't what it used to be.
So with American and European markets indefinitely depressed, what's a huge Asian manufacturing country to do? The dean of the School of World Economics and International Affairs at Russia's National Research University Higher School of Economics, Sergei Karaganov, says that a reorientation of Russia to East from West could be a complete economic game-changer.
Although Russia continues to integrate itself with Europe - especially Germany - its relationship with the Asia-Pacific region is what will determine the country's success in the coming decades, according to Karaganov in his recent 'Project Syndicate' column.
Just yesterday, America's Federal Reserve Bank pledged to keep interest rates at rock bottom for at least another year. The Fed's action is the latest acknowledgement that the West is saddled with near-unmanageable debt. The purchasing power of Western consumers isn't what it used to be.
So with American and European markets indefinitely depressed, what's a huge Asian manufacturing country to do? The dean of the School of World Economics and International Affairs at Russia's National Research University Higher School of Economics, Sergei Karaganov, says that a reorientation of Russia to East from West could be a complete economic game-changer.
Although Russia continues to integrate itself with Europe - especially Germany - its relationship with the Asia-Pacific region is what will determine the country's success in the coming decades, according to Karaganov in his recent 'Project Syndicate' column.
For more: China’s Export Surge Could Be a Boon for Russian Economy - International Business Times
No comments:
Post a Comment