Amid Crisis, China Faces Its Own Slowdown

Unexpected 2.2% fall has analysts fearing major crisis for powerful economy

(NEWSER) - China’s exports have taken a sudden, unexpected hit from the global economic crisis, possibly an early indication that the world’s fourth-largest economy is on the verge of crisis. Exports, expected to rise at least 15%, shrunk instead by 2.2%, marking the first such fall in 7 years for the Asian giant, the Daily Telegraph reports. More»

Beijing can't fight openness forever: Roger Cohen

(NEWSER) - It's about time somebody took China to task for getting rich from globalization while resisting the openness that makes it possible, writes Roger Cohen. The confrontation between Google and China—"the behemoth of global connectedness and the behemoth of global growth"—exposes the paradox behind China's transformation, Cohen writes in the New York Times. More»

Fed chief warns global imbalances could trigger new meltdown

(NEWSER) - The world economy is headed back down the drain if Asians don't start spending more and Americans don't start saving more, Ben Bernanke said at a conference yesterday. The Fed chief warned that unequal trade patterns were partly to blame for the financial crisis and that they are re-emerging as Asia leads the global recovery, reports the Los Angeles Times. More»

How one country ducked the economic downturn

(NEWSER) - Australia has weathered the financial crisis better than any other developed country. Last week its central bank raised interest rates, indicating its primary concern is now inflation, not growth. What were the keys? Phil Dobbie of BNET explains:

• Befriending China: Australia used to export much of what it made to the US and UK, but over the last decade much of that trade has shifted to China. In fact, some economists argue that Australia didn’t need a stimulus package—Beijing’s stimulus was enough.

Mexico contracts 21.5% as American demand dries up

(NEWSER) - Yesterday Mexico became the latest country to disclose a sharp economic contraction as a result of the slowdown in US consumption of imported goods. Mexican GDP fell at an annualized rate of 21.5% in the first quarter, following Germany, down 14.4%, and Japan, 15.2%—its worst performance since 1955. As the Wall Street Journal reports, declining US demand is taking severe effects on exporting nations. More»