{"id":38055,"date":"2018-09-21T05:45:06","date_gmt":"2018-09-21T10:45:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=38055"},"modified":"2018-09-21T05:45:06","modified_gmt":"2018-09-21T10:45:06","slug":"ex-pboc-head-warns-chinas-exporters-could-soon-ditch-the-us","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=38055","title":{"rendered":"Ex-PBOC Head Warns China’s Exporters Could Soon Ditch The US"},"content":{"rendered":"
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Ex-PBOC Head Warns China’s Exporters Could Soon Ditch The US<\/span><\/a><\/h3>\n<\/div>\n
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Former Chinese central bank governor Zhou Xiaochuan suggested<\/a> on Wednesday that the direct impact on China of the trade war with the US “appears limited,” though it could quickly prompt China\u2019s top exporters to pivot away from US markets. Xiaochuan, who left the bank in March after 15 years at the helm, told Reuters that China’s economy would be stable in 2018, with an expected growth rate of 6.5%, but needed to shift away from an economic model based on “urbanization,” or constructing ghost cities.<\/p>\n

However, the main risk to the global economy is protectionism according to the ex-PBOC head. The costs of protectionism could hit the US the hardest, as Chinese firms are expected to withdraw from US markets and expand into other global economies:<\/strong>“I think it will force China to look at many other markets. So it\u2019s not necessarily a good thing for the United States,” he said.<\/p>\n

“I think the speed of (geographical) diversification can be relatively fast and beyond many people\u2019s expectations.”<\/p><\/blockquote>\n

Reuters said Xiaochuan downplayed the idea that protectionism will severely affect economic growth in China, which he said had been estimated at 0.2-0.8% of GDP, but added that trade wars are creating uncertainties and could\u00a0hurt business confidence.<\/p>\n

Xiaochuan is right, in the latest US Economic Outlook\u00a0via Barclays, US Economist Michael Gapen revealed that global growth momentum is already slowing.<\/p>\n

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Gapen also showed that global trade volume as a share of world GDP has likely reached a turning point into a protectionist era.<\/p>\n

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As a result of the peak in “hyper-globalization”, China is being forced to change\u00a0its growth strategy after many decades.\u00a0The economic driver of supplying Western markets with cheap goods and constructing ghost cities in China are over.\u00a0\u201cWhether this is reaching the peak or has peaked and maybe going down, we need to find some new economic growth driver,” said Xiaochuan.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Ex-PBOC Head Warns China’s Exporters Could Soon Ditch The US Former Chinese central bank governor Zhou Xiaochuan suggested on Wednesday that the direct impact on China of the trade war with the US “appears limited,” though it could quickly prompt China\u2019s top exporters to pivot away from US markets. Xiaochuan, who left the bank in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,1784,2914,9937,805,3222,827,4521],"class_list":["post-38055","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-exports","tag-pboc","tag-tariffs","tag-trade","tag-trade-war","tag-united-states","tag-zhou-xiaochuan"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38055"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38055\/revisions"}],"predecessor-version":[{"id":38056,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38055\/revisions\/38056"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}