Common Ground for USA and China: "Paradox of Thrift" + "Paradox of Mindset"
China's economic slump deepened in the final quarter of 2008 as the impact of the global financial crisis spread. Economic growth plunged to 6.8% down from 9%.
Exporters have been hit hardest but spread to domestic industries as demand for autos,real estate and other goods weakens.
China's stimulus plan calls for higher spending on construction and oher projects, but success would depend on firms and consumers to spend more, reducing reliance on exports.
Chinese government encourages individuals,households to save less and spend more for the nation apropos of "Paradox of Thrify" plus the confidence in the government to recover from financial crisis via spending to boost GDP in China and in USA as well.
However,adjustment of consumer spending pattern will not happen overnight and folks in China and in USA are thinking about the global financial crisis in their minds. Hong Kong folks are spending less for the Lunar New Year as reported by Phoenix TV.
Francis Shieh a.k.a. Xie Shihao on Thursday, January 22, 2009 at 12.05 p.m.