The Chinese plan with a strong orientation towards consumption, generates economies in trouble a great expectation and the following question: can China’s economy help to compensate for the global economic slowdown? In this respect are not heard many voices in positive about this idea. For the Economist and Adviser to the Chinese Government, Cheng Siwei, the economy of that country must first solve their own problems before help other economies. Cheng Siwei opined on the matter: China charging and to bear partial responsibility for the current situation, to which added: but the priority that is presented is resolving domestic problems such as unemployment and a slowdown in economic activity instead of going to hurry to help others. For more specific information, check out Robert Iger . It is true that china’s economy can hardly compensate largely the slowdown of the world economy since its GDP represents 6% of the GDP of the global economy. A.
You may least expect a minimum contribution to global growth that prevents that the crisis is deeper even than it will be. In addition to the possibility that the Chinese economy would help the global economy in crisis, it emerged in the debate, the protectionist issue. For Siwei, the crisis will lead to further integration: globally the world economic slowdown will cause a deeper regional integration because a single country is more vulnerable to the financial crisis. If this were to occur it would be very beneficial to global economic recovery, although expectations are that the crisis will generate an increase in protectionism with implications in the aggravation of the economic situation. In addition, crisis will involve a reform in the international financial system and an increase in the regulation of the same, which take away momentum to the economic recovery when it occurs. Will China support the global economy? This debate about the capabilities of the economy East of support to the global economy in this time of crisis, sure to keep for a long time.
The events will indicate to what extent the generated expectation may materialize. Meanwhile, the Eastern country will continue its rapprochement with Latin America. This week the President of China Hu Jintao will in the region, prior to the Apec Summit. Peru and China Wednesday 19 announced the conclusion of free trade agreement (FTA) negotiations between the two. The activity of Hu Jintao in Latin America, will begin in Costa Rica where will seek concrete signed a dozen agreements and announce with his counterpart, Oscar Arias, the commencement of negotiations for a Treaty of free trade agreement (FTA). In addition there is the possibility that China will build a modern oil refinery in Costa Rica to meet the demand in the region, with an investment of up to US $1.2 billion in a joint action of the Costa Rican oil refinery and the China National Petroleum Corporation. Later you will arrive in Cuba to meet with President Raul Castro, in a sign that reinforces political and commercial relations between the two Communist allies. The international financial crisis has shown beyond the existing questioning worldwide about the global leadership of the American economy, there is no any country or group of countries that can take the place that has known to possess several decades us.UU. Yet Europe and Asian countries (China and India), appearing as emerging powers, have been unable to mark a true global leadership, so it is not possible to expect them to do much against the slowdown in global growth.