Mon, Aug 6th 2007 9:35am
Last week we linked to a story about slowing export growth from China and wondered what it meant about both the US and Chinese economies. Obviously, slower trade could be a reflection of a weakening economy, although it also seemed possible that the mounting concerns over the quality of Chinese goods could be a contributing factor. Today, the Wall Street Journal notes the same trend, but offers a much more sanguine perspective. The claim is that the Chinese government has instituted a new tax on exporters, which will kick in later this year. As such, manufacturers have tried to front-load their sales, squeezing as much of their annual orders out before the tax comes into place. The Chinese government has tried hard in recent years to slow down the economy, which has been on fire. While this tax may result in a temporary slowdown, it's unlikely that it will do much to alter the fundamental economic equation of high American demand for cheap supply from China.
If you liked this post, you may also be interested in...
- Chinese State Patent Troll Absorbed By Smartphone Maker Xiaomi, Adding To Its Patent Hoard
- Donald Trump On Intellectual Property: China Is Bad
- China's Home-Grown Version Of Spotify Shows How To Make Money In A World Of Digital Abundance
- Yes, You Read That Correctly: China Says It's OK For Members Of The Public To Record The Police
- Clinton Friend Admits What Everyone Knows Is True: Clinton Still Supports TPP & Will Back It