The latest fiscal crisis in the United States worried China, but there is very little that can be done by China, says economic analyst Arthur Kroeber in the News Oberver. Although there is clear resentment against a world following rules set by the US, China also profits from it, he adds.
The News Observer:
China, with an economy still heavily dependent on exports, needs a robust American economy to continue to bolster its manufacturing sector and that makes it unlikely that China would stop buying America’s debt in the near future, said Arthur Kroeber, managing director of GaveKal Dragonomics, a global economic research firm in Beijing.
That doesn’t mean, however, that China’s leadership isn’t worried that repeated fiscal crises – Washington must once again confront the issues that prompted the shutdown in just a little more than two months – could dampen America’s economic recovery and, in turn, hurt China.
“There clearly is a level of concern,” Kroeber said. “From a strategic standpoint, the Chinese realize they live in a world where the rules are set by the U.S. They resent that on the one hand, but on the other hand, they benefit from that a lot.”
Arthur Kroeber is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.
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