Chinese dumping goods on India: Proof of Negative Consequences of Chinese Stimulus
This entry was posted on 6/17/2009 2:08 PM and is filed under uncategorized.
In prior articles I predicted that the Chinese stimulus
package had put over capacity into over drive. The proof has come out in the
fact that the Chinese are dumping some of their excess stuff that they can no
longer sell to the US consumer to India. The Indian government is taking action
to stop the dumping. Still it is an interesting example of the problems facing
the Chinese government. My assumption is that they are hoping for an early end
to the recession and that the American consumer will start buying again. This looks
doubtful. So the Chinese are still pursuing a policy that no longer works in
the present enviroment