Posted on 09/08/2001 10:06:38 PM PDT by super175
Slumping Asian economies have called on China to toss them a lifeline, but Beijing says it can do little to take up the slack from a U.S. slowdown.
With demand from the United States drying up, many Asian countries have looked to China's vast market to bail them out.
"It's one of the few economies that is growing strongly so I think that's very helpful," Singapore's Minister of Finance Richard Hu said at an Asia Pacific Economic Cooperation finance ministers meeting, which ends on Sunday.
"China will try to continue to grow as strongly as possible to give confidence to China itself. Of course, then it helps the rest of the world."
China's economy is the fastest growing in Asia. It is expected to grow an annual 7.0 to 7.5 percent this year, despite a global slowdown which has crippled the region.
But Chinese officials say in spite the country's strong performance, it cannot make up for lost demand from the United States, now struggling to kick start a recovery.
"China is doing its own homework to maintain domestic demand but I don't think you should expect China to play such a big role as the United States or even Japan," China's Vice Minister of Finance Jin Liqun said.
"China is still a low income, developing country."
Despite the reassurances, some Asian countries have responded with alarm that China's economy has continued to grow so strongly. They say China is rolling over the region, flooding the world with cheap exports and draining away foreign investment from the rest of Asia.
HOLLOWING OUT
Japan, South Korea and Taiwan are also facing the threat that many of their manufacturing industries could move to China to take advantage of lower costs.
"We are now observing the 'hollowing out' of some industries in Japan which has caused damage to the Japanese economy," Japan's Finance Minister Masajuro Shiokawa said. "We are willing to take appropriate measures to respond to that."
Asian countries play to their advantages to compete, maintaining selected industries and selling products to China that it lacks, such as advanced technology and commodities.
China's market has proved to be fiercely competitive and Asia's exports to the country still make up a relatively small proportion of their total overseas sales, analysts say.
Resource-rich Australia hopes to supply natural gas to China for a planned terminal and pipeline project in southern Guangdong province, a top Australian official said.
"If you look throughout the region, China's economy is still growing strongly, which is good," Australian Treasurer Peter Costello said.
"We hope that growth will continue in China. It's such a large country, it's such a large domestic market that it may be less exposed to the global downturn than other countries."
Although China might be insulated from the global slowdown because it exports a lower proportion of technology products than many Asian countries, it is not immune.
China has used a massive fiscal push to support the economy and analysts remain divided over the strength of domestic demand.
"The economic development of this year on the whole is relatively satisfactory, though the unfavourable external environment and the decrease of exports have affected it," China's Minister of Finance Xiang Huaicheng said.
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That's what's killing them. They can't compete with highly programmed slave labor.
When I go to Walmart and Target, I think of the great prices I'm getting on things that don't rely on lazy, overpriced union workers.
From the 21st Century to the 20th, I wave welcome.
gee, they have their very own patsy buchanan, except this clown has some actual power
"We are willing to take appropriate measures to respond to that."
somebody should tell him that when you're in a giant hole like the one they've dug during the last 15 years, the first rule is to stop digging
Think of the Chinese crossing the Yalu in late 1950, times 100.
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