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Is China's strong output a good sign?

Workers at a semi-hightech factory in Shenzhen, southern China

TEXT OF STORY

Bill Radke: Speaking of China carbon footprint, that country's industrial engine continues to crank. Today, the Chinese government released figures that suggest a factory working at full-tilt. From Shanghai, Marketplace's Scott Tong asks, is this a sign the global economy is coming back?


Scott Tong: Chinese factories put out 19 percent more stuff in November than they did last November -- stuff like steel, coal and cars. And to keep the lights on at those plants, power generation surged the most in five years. Also up: Chinese imports, things like iron ore from Australia and oil from the Middle East.

But for all the activity, inflation's so far muted. If you cut out food, Chinese consumer prices continued to decline.

Early in this recovery, the Chinese government's stimulus played an active role. But last month, state investment in infrastructure tapered off, as did government lending.

The private sector seems to be recovering independent of the government, even exports. Demand from the U.S. and Europe remains down, but Chinese exports to Southeast Asia gained 20 percent.

In Shanghai, I'm Scott Tong for Marketplace.

About the author

Scott Tong is a correspondent for Marketplace’s sustainability desk, with a focus on energy, environment, resources, climate, supply chain and the global economy.
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"Exports to the U.S. and Europe remain down, but exports to southeast Asia gained 20%."

This is what the non-Keynesian economists have been predicting. The BRIC nations are decoupling their economy from the U.S. and Europe. Despite what the Keynesian economists keep saying, the BRIC nations are not leading the U.S. and Europe out of the recession ... they are leaving us behind, like a caboose cut loose on the tracks. Nations with a cash surplus and a strong manufacturing base don't need to trade with nations that won't pay their bills, or want to repay with inflated currency. The BRIC nations can trade amongst themselves.

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