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China's Export to Suffer Losses Due to Terrorist Attacks on the US
The terrorist attacks on the US would add fuel onto the fire of its already downturn economy, and its impact on China cannot be belittled, said Wang Yuanlong, researcher of International Financial Research Center of Bank of China.
America is one of China's major trade partners, and most likely its economic downturn would lead to the decrease of China's import and export volume. As China's foreign trade surplus with the US in the first half of the year decreased, some sources pinned their hopes, to some extent, on the recovery of the US economy in the second half of the year. It is hoped that it could motivate China's trade volume to rise before the terrorist attacks on the US but now it seems to have turned into bubbles.
Wang said that it is hard to tell whether foreign investment in China would suffer from the influence for America is also China's leading investor. The 9.11 terrorist assaults, plus last year's economic recession, would both exert great negative impact on the American people. The psychological barrier and confidence factor can sometimes inflict even a greater influence on economy than the substantial one, the Asian financial crisis being the best example.
Nevertheless, China's exchange rate, stock and money markets would not suffer big losses because its RMB is not a hard currency for free conversion, and the stock market is relatively closed too.
By PD Online Staff Li Yan
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