What is the effect of the slowing down of China's economy to US economy?
In comparison to other times in the history of mankind, the world is more dependent with each other ore than ever. There were political and economic organization established among nations. We have the EU and ASEAN for example. A nation protects regional interest but while doing that they are also trying to be more independent in a co dependent economies.
China's economic gains is big in the last five years, but they are now slowing down. What do you think are the consequences of this to other economies specially the US?
The world, or at least the western world, has become lazy and happy to let countries such as china and Korea take over the manufacturing industries. Suddenly it is dawning on the USA and UK that our industry is declining to the benefit of third world nations. Perhaps this slow down will kick start our own manufacturing out of decline and back to what we do best.
Kind regards Peter
Since China is the workshop of the world with two major economical partners the U.S. and Europe, its slowing down will definitely impact their balance of trade. Chinese exports will diminish. And logically the American and European imports will drop. If it persists both U.S. and European economies will either look for another partner ( in their search for economies of scale) or manufacture it on their local markets (less probable).
If China´s economy is growing then it means that its effectivity is increasing. So less work effort is necessary to produce the same. The benefits of efficiency gains are used in part to prosper the Chinese economy, but also to support the debtor economies like the US (buying bonds...)
So if economic growth slows down, there will be less support for foreign economies. That in turn will hurt countries like the US. In fact the US is so much on (foreign financed) debt dope, the US economy will be on cold turkey for a while.
none for China's government run there money while the United States and British is PRIVATELY OWN AND AND THERE GOVERNMENT USE THERE TAX MONEY TO FUND THE PRIVATES OWN COMPANIES FOR THEM TO MAKE DEALS.There are always up and downs to ALL GAINS AND LOSE. that balances. But in the United States and Europe any bank lose is taken from it people so there NEVER ANY BALANCES. just thievery.
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