By Frank Holmes
Apr 26, 2010, 1:00 PM
Just as the U.S. consumer (click here) is key for Chinese exporters, so too is the Chinese consumer key as an export destination for the rest of emerging Asia.
A research note this week from the Hong Kong-based brokerage CLSA Asia Markets spells out how important the Chinese consumer was in pulling its neighbors up and out of the Great Recession. Many of these countries have more than doubled their exports to China since the depths of the recession in late 2008 and early 2009. Exports from technology-oriented Taiwan to the mainland, for example, are up more than 160 percent from the bottom, while Singapore has boosted its exports to China by more than 120 percent and South Korea by nearly 100 percent.
Those are relative numbers – how important is China to its neighbors in absolute terms? Nearly 30 percent of Taiwan’s total exports, accounting for 15 percent of its GDP, now go to the mainland. A quarter of South Korea’s exports (10 percent of GDP) are China-bound. For both of these countries, and others as well, China is more than twice as important as the United States in terms of exports....
The disparity in export-import with China and the USA occurred in 2005 and the USA economy felt it nearly immediately. There were complains and all the jobs in the USA were disappearing.
This is from Brad Setser. (click here) Chinese exports are down 17.5%, but imports are down a stunning 43%:...
Did you know that Henry Paulson became USA Treasurer to a Republican Presient in 2006 because of the economic downturn and the burgeoning housing crisis. Did you know he spent most of that time in China and now has a financial firm there?
That big dip in exports and imports in 2009 is the Global Economic Crash. It didn't change the relationship.
As of June 2013 the USA was averaging a $24 billion US trade deficit PER MONTH with China. (click here).
$24 billion per month trade deficit with China. That is $2 trillion, 8 hundred and 80 billion US deficit per year with China.
Right.
