China Tells

China and America’s economies are closely interwined with each other in a lot of ways. China’s export sector is highly dependeng on the demand from America’s private sector, while America’s public sector is highly financed by Chinese (See Article from NYT). Such a balance, however, is vulnerable to collapse if China’s over capacity of production has no way out. The consequence of such a collapse is hard to imagine: cheap chinese goods have to be liquidated at lower than cost and companies suffer from loss in selling. The unemployment rate in both China and outside world would suffer and American government’s borrow cost would increase due to less reserve from China government. One thing seems to be clear that two countries are dependent on each other so much that if any one has a major economic shock the other is unlikely to be detached. Another important conclusion is that a healthy growing China is positively contributing to the world economy, as a destablising China would make most of the trading partners suffer more.

中国和美国的经济已经互相影响依赖到不可或缺任何一方的地步。美国巨额的政府债务需要中国这个最大的债主来购买，同时中国的出口部门也需要美国的私人需求提振。这样一种脆弱的平衡是否可能会被打破继而引起全球经济动荡？这是许多学术界教授所关心的问题。