China's Economy Mending: Report

It has to be noted that China is in an envious position with regards to the global economy: China is a supplier and manufacturer of goods. The United States has become relegated to a consumer of goods. Most economists would agree the U.S. state of affairs is unsustainable.

China has set an official economic growth target in 2009 of 8%, which the government has stated is the minimum needed to prevent unemployment reaching a level where social unrest breaks out. Wait, unrest in a dictatorship? Why worry?

The Chinese economy expanded by 9% in 2008, down from 13% in 2007.

Liu Tienan, vice chairman of the country's top economic planning body, told reporters:

"Despite the downward pressure on the Chinese economy since the fourth quarter of last year, we have nonetheless seen signs of recovery. We have the conditions, the ability and the confidence to achieve eight percent growth."

He also added that China opposes protectionism:

"Protectionist measures may have some short-term effects, but it definitely amounts to short-sighted behaviour. I can tell you all that we oppose protectionism."

Once again, as a supplier rather than a consumer, this is far easier for China to state than it is the U.S., which continues to state a public stance against protectionism, despite a "Buy American" clause in ARRA.