Tuesday, April 28, 2009

China’s Trade Decline Slows, Aiding Asian Economies

Sandra Fickweil

04-28-2009

10:30

As China’s trade decline slowed down in this month, some think that global demand is stabilizing. The Commerce Minister Chen Deming said: "I have some good news, in the first 20 days of April, we have witnessed a slowdown in the decline of our foreign trade".

Not only investments by U.S. companies in Japan, but also stronger Chinese exports lift up other Asian economies as their nation is in need of commodities and components for manufacturing. An economist with Barclays Capital in Hong Kong noted that China’s exports were recovering from a very low base. The exports dropped by 17.1 percent in March from a year earlier after a record 25.7 percent decline in February and imports decreased to 25.1 percent.

According to the head of emerging Asia research at Barclays Capital in Singapore, the "slumo in activity in emerging Asia is over", as there are signs that show that the worst may be over for Asia’s export- dependent economies.

For example, Ford Motor Co., International Business Machines Corp. and Dell Inc. and others signed 32 contracts in America yesterday collaborating with Chinese companies.

The following companies also linked deals at the forum hosted by the U.S. Chamber of Commerce and the China Chamber of Commerce for Import and Export of Machinery and Electronic Products: Cisco Systems Inc., Hewlett-Packard Co., Microsoft Corp., EMC Corp., Oracle Corp., Sun Microsystems Inc. and Amway Corp..

Event the IMF said last week that it gets better right now.

After this terrible global downturn, increase of unemployment, decrease of imports and exports, devaluation of currencies etc, finally there is a sign that it is getting better. Although it will take a long long time until everything is the same as before, however at least the decline slows down. After governments spent so much money, billions and billions of dollars to boost economy and try to get rid of the downturn, finally it seems that this boost starts to work out. Of course there will be no change from today until tomorrow, it takes its time, however we can drawing hope again.

http://www.bloomberg.com/apps/news?pid=20601080&sid=aZkXPy.tzh1U&refer=asia

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