Between January and October, China’s statistical bureau recorded $1.2 trillion (£580 billion) of industrial spending. During the same period, lenders in America were slamming the door on their customers, canceling credit cards, demanding the keys to homes, apartments and trailers. The message from the banks is clear: the party is over. Still, China’s factory floorspace continues to grow. You have to ask the question: who will buy the stuff?
The Pollyanna economists think it is all different now, a view espoused by the World Bank in its most recent report on East Asian economic growth. China is creating its own demand, “decoupling” from the US economy, it says.
I didn’t see much decoupling on a tour in early June of a furniture plant in southern China owned by Samson, a Taiwanese firm. Seven production lines, each in its own giant shed on a million square meter site were dedicated to producing reproduction antique furniture. Between 7,000 and 8,000 Chinese workers cut timber, sandpapered, lacquered and varnished enough wardrobes and dressers to fill 1,200 containers every month
The alarm bells begin to ring in China - Times Online
also see China Trade Online