Friday, January 04, 2008

Debunking two chinese myths

Well, the media is chockfull of reports that China’s economy may not be as robust as it has been made out to be. But should anyone be smug about that? The facts seem to the contrary. The global growth have slowed down.

As is the other popular wisdom, Chinese economy is way too much dependent on its exports and is certain to suffer a dent because rich world’s finances are in trouble. Here again it’s a myth waiting to explode. It seems it’s got to do with the investment led growth and increased domestic consumption, two healthy indicators that drive the Chinese economy.

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