Big trouble in China
Recent weeks have seen some shocking falls on the Chinese stock exchange, which has mostly hit smaller investors, and taken the shine off the West’s love affair with the Chinese economy. So far, the various Western stock markets have survived, albeit with a few wobbles. But just how much of our economy now depends on China?
We only have to look at the financial results from some of the major press manufacturers such as Heidelberg and KBA to see that their recovery is largely based on increased press sales to China. Equally, major digital players such as HP depend on emerging markets like China for continued growth.
So the question is, how stable is China, given its lack of transparency, democracy, human rights or any of the things that we in the West take for granted? Will any of this come back to bite us if the economy does falter?
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