China won’t save the world economy, nations are still tied to USA

At the hardest times of the crisis frenzy many people believed that the recovery of the Asian economy along with the largest part of the world depends on China’s prosperity. But as China’s governmental agencies are crowing daily over the achievements in the national economy Asia as well as the rest of the world feel little or no effect at all. Japan as a largest economy in Asian region is getting worse every day. As data shows exports and output are plunging, unemployment is at a 25-year high and those all-important summer bonuses are evaporating. The only positive moment is a less gloomy sentiment among manufacturers.

While China is trumpeting its success shipments from Japan to the Heavenly Empire dropped 29.7% in May as compared with 25.9% in April. These figures more than any Chinese official eulogies to itself say the truth. Still, these reports are not as bad as for the US and Europe. Shipments to the US fell 45.4% in May with the same figures recorded in EU countries.

To protect itself against the global cataclysm China has been taking quick and critical actions. In may its manufacturing increased for the fourth consecutive month. Meantime central bank governor Zhou Xiaochuan assures that the environment may continue improving through third and fourth quarters.

Thus, China doesn’t seem to be driving Asia and the rest of the world towards recovery, it is just protecting its own interests. And while Asia is less reliant on the US than it was a decade ago its prosperity still is linked to US economy. The longer the US is in recession the harder it wil be for Asian nations to grow.