Within this article, it talks about how China’s auto marketis in trouble of shrinking or altogether ending. Which if this happens, it willhurt American auto companies such as GM motors, Ford, etc. in China. Some evidence of this is that the firstmonth this year, car sales went down 23% in China, which has come at a shock.Plus it doesn't make it better when China is not willing to give thesecompanies permits for factories to be built. I really thought this wasinteresting because we have seen recently of how well China is doing with it’seconomy and that things would be picking up in China. It is really sad to seethese companies doing bad when they sell more in China than in America.
http://money.cnn.com/2012/02/23/autos/us_automakers_trouble_china.fortune/index.htm
Brandon Wise
We have watched the exponential growth of the Chinese GDP over the past several years. This article however gives some insight into the current downward trend in China's GDP Growth Rate over the past two years. Having said that their annualized GDP growth rate is still projected at 8.9 percent in Q1 of 2012.
ReplyDeleteWhen you refer to "auto markets" are you talking about auto manufacturing in China, or the direct sales of automobiles in China (i.e., business to consumer)? If the latter, what is the principle reason car sales are going down? Increase in public transportation? Decrease in roads and/or road safety? I would be interested to know (I should probably read the article, but these are just my thoughts based on your summary).
ReplyDeleteBased on Troy's comments, I was not aware that China's GDP Growth Rate has been following a downward trend over the past two years. I thought that kind of woe was reserved for Japan's economy (which I believe has been following a downward to neutral trend for nearly twenty years now since their bubble burst).
Trevor Habermeyer