Whoops, So Much For Chinese Consumers Saving The World

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So this news doesn’t speak to well of the prospects for the “burgeoning” Chinese consumer base to save the rest of the world, especially the part that thinks an export boom will be its salvation.

AP:

Exports rose 38.1 per cent over a year ago to $145.5 billion while imports gained 22.7 per cent to $116.8 billion, the customs agency reported Tuesday. Export growth was above June’s 35.2 per cent rate but the rise in imports was down sharply from June’s stunning 53 per cent expansion.

….

China’s voracious appetite for imports has eased as Beijing clamped down on a boom in bank lending and construction to avert a possible asset price bubble. Economic growth slowed from the first quarter’s 11.9 per cent to 10.3 per cent in the second quarter.

Foreign economies have felt the impact of falling global commodity price as surging Chinese demand eased. Mining and other companies that enjoyed a windfall from China’s boom warn their explosive sales growth will slow.

So, you can cheer China’s sound policies towards cooling its bubble, but… it’s going to be felt in a town near you.

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