how would we hold up?, page-6

The financial situation in China is funded by the developed countries through the chinese positive trade balance as well as the internal consumer spending. Remember too that they were prospering through the olympic games when the rest of the world was suffering a financial crisis. It is Chinese spending that is keepiong the world afloat financially at this point in time. Chinese spending will continue. they are not spending borrowed money like most of the developed countries. They have no need to rein in spending or have their reserve bank keep increasing interest rates in the way we do.