China is running the risk of its own bubble by betting on renewed demand from US consumers that is unlikely to appear, the manager of the world's biggest bond fund said.“The Chinese, I suspect, will have a bubble of their own to confront,” Bill Gross, who runs Pacific Management Co, or Pimco, told Bloomberg News. “It’s gearing up for export that doesn’t find an end consumer, that’s the real problem in China.”
China, now the world's third-largest economy, will expand 8.3pc this year, the Organisation for Economic Cooperation and Development forecast yesterday.
Many experts believe that China's policy of exporting its way to growth by holding down the value of its currency was central to the global imbalances that were at the heart of the financial crisis.
(from Telegraph, November 20, 2009)