Asian exports to grow strongly in next two quarters: Morgan Stanley<\/p>\n
Agence France-Presse, China<\/p>\n
Asian exports should boom in the next two quarters after
\nstrong growth in the U.S., supported by modest expansions in
\nJapan and Europe, Morgan Stanley's chief economist in the region
\nsaid on Tuesday.<\/p>\n
Andy Xie also said that within two years, China is expected to
\nreplace the United States as the biggest export market for East
\nAsia.<\/p>\n
\"We have probably two more quarters of high growth, relatively
\nhigh growth then it's going to come down with a high base,\" Xie
\ntold reporters on the sidelines of a conference organized by the
\nU.S. investment bank here.<\/p>\n
He said U.S. economic growth peaked in the third quarter to
\nSeptember when it surged to a 19 year-high of 7.2 percent, and
\nshould continue to expand by more than four percent in the next
\nfour quarters.<\/p>\n
Japan should grow 2.5 percent and Europe two percent in the
\nnext few quarters.<\/p>\n
\"Put these stories together (and) our exports should do quite
\nwell. At least we have two quarters of relatively good times to
\ncome,\" he said.<\/p>\n
In a presentation to the conference, Xie said East Asian
\nexports are restructuring around China to take advantage of the
\ngiant nation's sizzling economic growth.<\/p>\n
By doing so, East Asian countries avoid competing with China
\nin the U.S. market.<\/p>\n
While the U.S. buys increasingly from China to replace imports
\nfrom East Asia, countries in the region export directly to China.<\/p>\n
\"We expect China to replace the U.S. as the biggest market for
\nEast Asia within two years,\" he said.<\/p>\n
Xie also urged the U.S. to relax restrictions on the sale of
\ngoods to China to reduce its trade deficit with Beijing.<\/p>\n
\"The problem is that America does not want to sell to China
\nwhat China wants,\" he said.<\/p>\n
For example, China sources most of its machinery imports from
\nGermany and Japan and semiconductor imports from countries like
\nSouth Korea. It buys raw materials from Australia, Brazil, South
\nAfrica and India.<\/p>\n
Machinery equipment accounts for 45 percent of China's total
\nimports and would have been valued at US$200 billion this year.<\/p>\n
\"In this picture, the U.S. industry is not there. It is only
\nwhen the U.S. relaxes its export restrictions on high-tech
\nequipment (to China), then the trade again can become more two
\nway,\" he said.<\/p>\n
The U.S. trade deficit with China last year amounted to $103
\nbillion, nearly a quarter of the global U.S. shortfall.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-exports-to-grow-strongly-in-next-two-quarters-morgan-stanley-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}