Emerging Market Strategies

William Gamble

Chinese dumping goods on India: Proof of Negative Consequences of Chinese Stimulus

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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

 

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