China increases odds of being first big economy out of slowdown
China says its investment in the economy, largely from a $500 billion stimulus package, would pull its economy out of several months of lethargic growth in exports and manufacturing. It now looks like that may be true.
China has argued that its system of central government control of many of the aspects of banking and industrial output make its prospects better than those of the "corrupt" economies of the U.S. and Europe which have nearly fallen apart due to lax regulations on the financial activities of banks and brokerages. In what is probably a correct evaluation of Western economic trouble, China has insisted that the credit and mortgage-backed securities problems could not have happened in the world's most populous nation.
According to Bloomberg, "China's new lending surged more than sixfold from a year earlier to a record 1.89 trillion yuan ($277 billion) in March, adding to signs that growth in the world's third-biggest economy is gathering pace."
The news increases the odds that China will lead the world's economy out of trouble which will improve its standing among the world's large nations and give it more power in negotiations on issues like currency and world trade.
China's boasts about its ability to turn its huge economy on a dime may turn out to be true.
Douglas A. McIntyre is an editor at 24/7 Wall St.