China Is A Lagging Economy

by bitznbitez

Over the last month or so the impact of China on global equities markets has blunted.   Even though yesterdays disappointing trade data out of China is resulting in a slight drop in equities the volatility is much lower than it was a few months ago.    Part of the reason for this, I believe, is the continued strengthening of the US economy.  In particular unemployment continues to fall, over the last period the percent of population in the work force has begun to increase.   Employers are starting to feel some slight wage pressure, and minimum wages are rising.

The US led the way into the global malaise, its consumption dropped, the rest of the worlds consumption likewise.  China is substantially an exporter as I understand it.  So the success of China’s economy depends substantially on the US and other importing nations economies.   If these other economies recover then China will too.  Its recovery will be later by a few quarters though.

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