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Can China's spending lift the world recession?   [Copy link] 中文

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Post time 2013-6-20 09:03:03 |Display all floors
This post was edited by futsanglung at 2013-6-20 09:06

As Seen on the BBC website

Can China's middle class spend the world out of recession?By John SudworthBBC News, Zhengzhou, China

The Zhangs are happy to call themselves middle class

Watch


Meet the Zhangs, one of China's new middle-class families who - with some 320 million credit cards in circulation in the country - some economists are going to spend their way to a revival of the global economy.

Zhang Dongyang runs his own construction company in Zhengzhou, one of China's fastest growing cities.

His wife, Zhang Min, is a hospital administrator, and together they earn about $40,000 (£25,000) a year.

They own their own apartment, mortgage free, drive a Japanese-made Lexus car and will, they say, soon start taking not one, but two holidays a year.

Their six-year-old son, Zhang Zhiye, attends a private school.

"Yes I do feel middle class," Mr Zhang tells me, adding that it's now become acceptable to admit it.

"People who are more capable rise to the top. This is natural. It is the survival of the fittest."

Of course, the Zhangs aren't going to single-handedly rescue the world from economic misery.

But their spending, along with millions of other middle-class Chinese consumers is, in these doom-laden times, arguably one of the few bright spots on which a future global recovery might be based.

Zhengzhou, which has a famous golf course, has experienced rapid change



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Post time 2013-6-20 14:01:51 |Display all floors
They own their own apartment, mortgage free,


Not many own their homes at their age.  I think think they're being encouraged to spend more at home than on foreign goods so that wouldn't do a lot to lift the world recession.

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Post time 2013-6-20 14:19:18 |Display all floors
Baldnuts Post time: 2013-6-20 14:01
They own their own apartment, mortgage free,

It would all help. If they spend a little more, the people who they spend it with have more to spend and so on and so on. If only 2% of that goes on foreign goods added to the raw materials bought from abroad that would mean that those b people in the other country have more to spend and so it goes on. This would have an effect on the economy across the whole word, not greatly at first but it tends to have a snowball effect.

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Post time 2013-6-21 17:38:34 |Display all floors
Kbay Post time: 2013-6-21 17:36
China should start restricting the outflow of money.

As per a previous thread of mine I can not understand why many Chinese pay over the odds for mediocre Western made goods.

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Post time 2013-6-21 20:35:54 |Display all floors
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Post time 2013-6-22 07:43:57 |Display all floors
zglobal Post time: 2013-6-21 20:35
China will not spend it's way out of this one.

When the debt crisis really hits they will shrink li ...

There are some reality checks to come but nowhere near as bad as you claim.

After all China can always recall is loans to the US

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Post time 2013-6-22 10:13:54 |Display all floors
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