CHINA’S LANDING

CHINA’S ECONOMY: SOFT LANDING, HARD LANDING OR CRASH LANDING?

Shae Smith

Money Morning, November 26, 2011 

There’s no escaping the Eurozone crisis. It even managed to keep China away from the headlines. However, in recent days China’s economy has fought its way back to the front page.

Why?

Because China’s about to lose its biggest export market.

As the Euro crisis grows, European consumption is rapidly falling. Meaning China will be hit where it hurts… their manufacturing sector.

Which also means… China’s soft landing could now be China’s hard landing …moving into a devastating crash landing.

According to Bloomberg News, ‘China’s exports rose at the slowest pace in almost two years in October as Europe’s deepening debt crisis crimped demand.’

Crimped demand? Demand from Europe has tanked since August.

In August, export growth was a robust 22.3%. Less than a month later, it had tumbled to a tiny 9.8% (that’s tiny for China).

And there’s worse to come. Lu Ting an economist with Bank of America says export growth will fall further.

In total, Ting believes export growth to Europe could be just 10%… for the whole of 2012.

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