With continuing uncertainty in the markets and escalating concerns about the global economic outlook, what policy measures might China take in the event of a double-dip recession in the US or Europe?
During the downturn of 2008-09, China stood out as the bright spot, contributing to over
50 per cent of global growth in 2009 as spending on stimulus-related infrastructure projects got under way. Chinese growth has gradually become less reliant on the contribution of trade, while the proportion of the country’s exports destined for the US and the eurozone has been declining.
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