China Would Welcome a U.S. Slowdown
In China, some people might actually be looking forward to a U.S. slowdown. That's because an American recession could do what Beijing has not been able to accomplish—namely, cool off China's overheated economy, which in 2007 grew at its fastest pace in 13 years. On Thursday, Chinese officials announced that the economy expanded 11.2% in the last quarter of 2007 and 11.4% for the year. "China tried to achieve a soft landing, but was not able to," says Qing Wang, an economist with Morgan Stanley (MS). "In 2008, China may be able to mainly because of a [possible] U.S. recession."
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