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China Slowing -- Reliant Nations Could Be In Trouble

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Chinese manufacturing growth falters
By Simon Rabinovitch in Hong Kong and Jamil Anderlini in Beijing
Published: June 1 2011 03:40 | Last updated: June 1 2011 18:08
The world’s fastest-growing economy is slowing down – of that there can be little doubt. The question is whether other nations should be nervous or thankful.
The latest sign of an easing in China came in the purchasing managers’ index, a key gauge of manufacturing growth, which fell to 52 in May from 52.9 in April. The number remained above 50, signalling that the vast Chinese industrial sector was still expanding but at the slowest pace in nine months.
Indian manufacturing growth slows - Jun-01.
The danger is clear. With developed markets still struggling to shake off the effects of the global financial crisis, economies from Brazil to New Zealand have become increasingly reliant on China as a locomotive of growth.
Fears that it was sputtering into a lower gear in recent months have dented global markets and weighed on commodity prices, which are particularly sensitive to the strength of Chinese demand. That was the case again on Wednesday, with European shares and commodities mostly down.

Perhaps we and the US are buying less tattersall which in turn is causing their slowdown. Looks like the slowdown has gone global and only a matter of time before the HPI juggernaut meets its Waterloo.

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Always thought this "Asian Tiger Economies" talk was crap, they are dependent on Western economies to want to buy the stuff they make and offshore services.

Basically it's been a parasitic relationship with China and India sucking wealth and jobs out of Western developed countries and returning nothing, thus the hosts are dying.

Wishful thinking about kick starting local consumption will probably fail or be insufficient as most people in these countries have seen hardship within their lifetime and sensibly prefer a healthy savings account as opposed to consuming.

Edited by madpenguin
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  • 439 Brexit, House prices and Summer 2020

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      • down 5% +
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