China's export rate is crashing even faster than many experts thought it would. This recent Bloomberg dispatch offers a look at why. According to the story, Chinese exports "declined 2.2 percent in November from a year earlier." Imports are also way down -- over 15% down. As one Chinese economist quoted in the article notes, "The figures are horrifying … Plunging imports show that on top of faltering global demand, domestic demand is also shrinking as the economy cools." So if you're the Chinese government, what do you do to reverse the trend? "Tax cuts, a 'stable' yuan and extra efforts to create jobs will be part of efforts to maintain 'stable and relatively fast growth' and ensure social stability, China National Radio said after the meeting," the story suggests. Part of this effort will involve devaluing the Yuan, which is sure to stoke the trade ire of protectionists in the US and EU. But it will also make Chinese goods cheap, once again. Still, without global demand -- at any price -- China has little hope of pulling out of this slump before the West.
- Jason Busch