China's exports up 46% in February

[dipsydoodle]

Source: BBC News

China's exports jumped by 46% in February compared with a year ago, raising hopes of a strong recovery in global trade.

The increase was higher than analysts' expectations of a rise of between 35% and 40%.

It is likely to increase pressure on the Chinese government to raise the value of the yuan, which the US in particular complains is undervalued.

China's imports also rose strongly, increasing by 44.7% last month.

Read more: http://news.bbc.co.uk/1/hi/business/8559088.stm

[pampango]

1. "the trade surplus fell 50.2 percent in January and February combined from a year earlier

as demand within China, the world’s fastest- growing major economy, boosted imports."

http://www.businessweek.com/news/2010-03-10/china-may-start-raising-interest-rates-as-prices-gain-correct-.html

"Retail sales for January and February combined climbed 18.7 percent and industrial production advanced 19.5 percent, the survey showed. Economists combine January and February numbers to eliminate the distortion from a Lunar New Year holiday, something that likely also affected the consumer-price report."

"Analysts are debating the danger of bubbles in the nation’s asset markets as a consequence of the stimulus. Harvard University’s Kenneth Rogoff and Victor Shih of Northwestern University have warned in the past two weeks that a crisis could result in coming years.

At the same time, Stephen Roach, the chairman of Morgan Stanley Asia, said in a note yesterday that he saw a “false alarm” in tales of asset bubbles or an imminent banking crisis. While there are “very real” risks of asset and credit-market excesses, policy makers will act to ease the danger, he said."

Looks like China's trade surplus is starting to shrink as the rapid rise in consumer spending is causing the creation of a domestic market. Two months do not make a trend, but it is a step in the right direction.

[Zynx]

3. Roach is uncharacteristically optimistic there.

I'm not sure there has ever been a successful case of policy makers undoing large asset bubbles that have already occurred. We shall see. I am quite skeptical. I think that Chinese banks will simply be awash in bad debt and it is unclear when they might have to deal with that. Because of the peculiarities of the Chinese economy compared to true market-based economies, it could take some time to recognize the problems.

[liberal N proud]

2. The US economy must be recovering

If China can send us more cheap Chinese shit, we must be improving.

:sarcasm:

[rfranklin]

4. No extra charge for the toxic chemicals in the products!

Yum! Love that mercury and cadmium combo!

[AllentownJake]

5. They are spending money that they hoarded over the last decade nt

[onehandle]

6. Our future masters are doing well.

Brush up on your Chinese, kiddies.

[unkachuck]

7. they're booming without us....

....who would have thought the Chinese Communists would be better at playing capitalism than our wall street casinos or our banking parlors....not I....