Slipping Chinese Growth Could Hurt U.S. Exports
China's GDP growth has fallen significantly. Here's why it matters in the U.S.
To an American, an economic growth rate of 8 percent sounds like a cause for celebration. So to see hand-wringing over another country's growth rate slipping to 8 percent can be like hearing about someone who can only afford three Ferraris instead of four -- it's a nice problem to have. But for
[Read about the broad
The most direct way in which a Chinese decline might affect the U.S. is in demand for exports, says
The decline in china's growth rate "translates to a mild negative for the export markets," he says. "
That export growth is particularly speedy when compared to other U.S. export markets. Total U.S. exports to
That weakening could cause
"A shift in [Chinese] monetary policy, while it appears that U.S. monetary policy is on hold, would reverse that trend toward depreciation or at least arrest it temporarily," says Edelstein.
Some officials in the U.S. have already campaigned hard against an undervalued renminbi. Last fall, the
The U.S. has already seen one effect of the Chinese slowdown. News of the slowdown contributed to disappointing openings for Dow Jones Industrials, the
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Slipping Chinese Growth Could Hurt U.S. Exports | Politics
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