Jan
14

Sino Slowdown

china economyWhile US exports to China are just 1% of GDP, China’s slowdown still matters. Countries that export raw materials to China (like Australia), that have substantial two-way trade with China (like Japan), or that compete with China in the selling of finished goods (like Indonesia) will all see capital take flight, economies weaken, and currencies decline. That pushes up the dollar, reducing exports, foreign earnings and capital spending.

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