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"US crisis will have impact in China"

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Press Trust of India New York
Last Updated : Jan 19 2013 | 10:51 PM IST

Expressing concern over the financial crisis in the United States, Chinese Premier Wen Jiabo has said that the recession in the US market will definitely have an impact on the communist country.  

"Ten years ago, China-US trade stood at only $102.6 billion. Today, the figure has soared to $302 billion, a 1.5 fold increase.  

"...A shrinking US demand would certainly have an impact on China's exports. And US finance is closely connected with Chinese finance. If anything goes wrong with US financial sector, we would be anxious about security of Chinese capital," Wen told NewsWeek.  

He also expressed concern about the possibility of a US economic recession and noted how closely the US markets were connected with China's financial system.  

"We have seen a decline in external demand and China's domestic demand cannot be significantly increased in a short period of time.  

"We must read just macroeconomic policy. A recession in the United States would certainly have an impact on China's economy," Wen said.

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First Published: Sep 29 2008 | 6:30 PM IST

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