http://www.reuters.com/

China economy surprisingly strong; policy intact

Personal note : Interesting article to wich i will add first that Beijing has been spurring both internal growth and international growth in exportations all through the year while pushing to open new export markets through various deals across the world from BRIC countries to latin america and Africa .

Second as export diminished with the US for most exporting countries from asia and elsewhere intra asia exports must be expected to grow as China pushes that way with different tools including a wider use of China's currency as as a trading currency , while other asian countries are looking for alternatives to their US exports .

Third the correction on the Shangai market followed new directives about lending about a month ago in order to avoid the bubble that was building up in bank lending and on the stock market, those directives were immediately put in place by the banking system causing the readjustment that we witnessed before it became a problem thus avoiding a sudden fall of larger magnitude later this year .

Fourth , from the start of the year China went on a broad diversication of US dollar currrency into resources worldwide making headline news all through the year and as we witness here in Canada and elsewhere this buying spree is still going on an will be for sometime to come as their huge US currency reserve has still some way to go .

Fifth , As all this has been going on China has been reassesing it's investment in US assets redeploying it's portfolio while maintaining it's support of US bond emissions in order to maintain the value of the US dollar and it's huge hold of US denominated bonds , having no alternatives yet to that very major problem that has yet to be dealt with .

In the meantime recently it went through a TV campaign encouraging the population to invest both in silver and gold wich longer term will sthrengten the yuan , make it more likely to become an international reserve currency and act as hedge against inflation . At tha same time China's central bank has been actively growing it's gold reserve thus further diversifying from US currency and building a stronger base for the yuan .

Add to this that China's huge hold of US dollar and bonds is a double hedge sword giving China a larger measure of influence both on US policies at least regarding future deficit wich in itself is a say on economic and social policies while increasing China's international stature .

Indeed the future of China looks good relatively to most other countries , and what sacrifices they've made in the past in order to accumulate their wealth will benefit them greatly in the future , to finish i will say that a large portion of the population already benefited from this central ruling govt. and that at the present time this way of doing things under actual conditions is a great advantage both for the govt. and it's population as they talk the talk and walk the walk acting as of one mind .

Many critics them for being communist but their kind of communism greatly inspired from late Deng Xiaoping has led them so far from one of the poorest population in the world in the late 70s to one of the most powerfull nation in the wold having overtaken Germany as the third economy this year and in the process of becoming second by overtakig Japan in the near future .

While most say that China can't by itself support international growth one should consider that not one country can do that in in these modern times of widening world trades and more then ever power over the intenational economy is a wide spread affair increasing the need for cooperation and coordination of policies . It's a democrotasing process in the making and a redeploying of power and wealth that was greatly needed as the worldwide population is ever increasing in more complex and dangerous world .

All in all fiscal discipline and self sacrifces is the secret to self improvment when conducted with a clear vision and a strong will .

Regards Tec