When the conclusion to the first chapter of the financial crisis will be written, we know for sure that China will be the country to emerge first and strongest from the crisis.

The Chinese economy is still running on turbo, and in the middle of the recession China is the only country with growing car sales and increasing bank lending to both private individuals and companies. China has understood how to use the potential of the crisis, but has also been more mercifully affected than other countries. 

“Several factors indicate that China will be the first country to emerge from the crisis,” says Mads Iversen, one of DI’s China experts.

“China has only had an export crisis and not a financial crisis. China’s bank sector is consolidated and not nearly as vulnerable as in the EU and the U.S. Therefore, China’s crisis has only resulted from the decline in demand from the outside world and not because of internal financial problems and weaknesses. In addition, the exports are still of smaller significance for the Chinese economy,” Mads Iversen says.

In the period 2003-2007 China recorded an annual growth of 11% but only 1.8% could be attributed to exports.

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