Chinese economy started to play important role in affecting the world's economies after US?

Question

This week, the economy around the world, especially the stock market fell greatly and many said the it was due to the Chinese economy changes in China that affect the others country after the US. What do you think of this?

Answer 1

I think they are on to something. The Chineese economy is symbiotic to the US economy, and together the US and China in effect hold up the rest of the world economy. The US produces innovation/product design and provides capital investment, China in turn provides labor capital and actually builds a lot of the products that the US creates/designs. Also, china absorbs US debt by buying US treasury bills (bonds), which keeps the US government and US consumers spending. So if china has an economic hickup and stops buying our debt or producing products, then the US and the world economy is in deep trouble. In turn if the US stops buying china manufactured goods, then china is in trouble because a large portion of demand is in the US market. So the relationship between the two countries is very much a dependent one at this point.

Answer 2

China do play an important role in the world economy. But still needs a long time to compare with US. The population is really a huge burden. About the stock market, I really don't get it. I don't know why the Chinese stock market becomes influential so suddenly.

Answer 3

The Chinese economy is not as big as the US economy, but they have been growing so fast that most of the increase in the world's output has been consumed by them (for example, they represent more than 50% of the increased consumption of most metals). So when news of a slowdown in Chine come out, they certainly hit the rest of the world.