John At The Center

Nonetheless, China is still far from taking over as the chief driver of growth in Asia, let alone the global economy. The positive impact of its rapid expansion is still outweighed by the negative impact from U.S. consumers cutting back their spending. “The near-term scope for China to offset sluggish demand from advanced economies appears limited,” the IMF says, noting “Asia depends primarily on consumers in the large advanced economies.” Its researchers calculate that demand from the U.S. has historically accounted for one-third of Asian exporters’ industrial value-added output (a more accurate measure than the gross dollar amount of exports.

via Replacing the U.S. Consumer: Is China Up To The Job? – China Real Time Report – WSJ.