Fairly soon (within next two years?), when yuan swap lines are in place at all major currency trading centers, China will announce that all Government restrictions on the on/offshore ownership of yuan (and Chinese government bonds) are removed.
At that point the US t-bond market will implode, as the yuan takes over from the USD
China had its largest trade deficit since at least 1989 last month as Europe’s sovereign-debt turmoil damped exports and imports rebounded after a weeklong holiday.
The shortfall was $31.5 billion, the customs bureau said yesterday. Imports rose 39.6 percent from a year earlier, after a 15.3 percent slump in January, while exports increased
Growth in China’s exports slowed in December because of sluggish demand from the US and Europe.
Exports rose by 13.4% from a year earlier, the customs agency said, down from 13.8% in November.
Import growth also slowed, rising 11.8% compared with the previous year, much lower than the 22.1% growth in November.
Chinese Premier Wen Jiabao said business conditions may be “relatively difficult” this quarter and monetary policy will be fine-tuned as needed.
“We see downside pressure on our economy and elevated inflation at the same time,” Wen said during a two-day trip to Hunan province, according to a statement on the government’s website yesterday.
Bloomberg headlines confirm the Chinese export-led growth dynamo is growing dimmer by the day:
CHINA’S `NOT TOO OPTIMISTIC’ ABOUT EXPORTS IN 2012, CHEN SAYS CHINA’S TRADE GROWTH MARGIN DECLINED IN DECEMBER, CHEN SAYS CHINA EXPORTS 2 PERCENTAGE POINTS LOWER IN EACH MONTH OF 4Q CHINA 2011 IMPORT GROWTH RATE 5 PCT POINTS HIGHER THAN EXPORTS
A flurry of headlines out of China suggest global macro-economic volatility may be ready to take it to the next level. We discussed last week how China’s oh-so-generous offer of help to Europe was merely a veiled threat playing US against Europe in a game of who-gets-the-funding. Well, tonight, it seems, they are making
A man walks past windows of a shop masquerading as a bona fide Apple store in downtown Kunming, in southwest China’s Yunnan province, Thursday, July 21, 2011. China, long known for producing counterfeit consumer gadgets, software and brand name clothing, has reached a new piracy milestone – fake Apple stores. (AP Photo) CHINA OUT
China’s Commerce Minister Chen Deming, Japan’s Minister of Economy, Trade and Industry Banri Kaieda and South Korea’s Trade Minister Kim Jong-hoon (L to R) attend a photocall before 8th Trilateral Economic & Trade Ministers’ Meeting in Tokyo, capital of Japan, on April 24, 2011. Top trade officials of South Korea, China and Japan gathered
by Michael Clark
Dollar printing is “out of control,” says Chinese commerce minister Chen Deming in one of that country’s more explicit attacks on U.S. policy. Because of dollar issuance, he says, “China is being attacked by imported inflation.” In spite of that, Chen expects China’s export growth would be stable and imports would increase