Michael Schuman of TIME reports on the Chinese economy in the midst of the global recession:
The global economy is short on just about everything it needs for recovery these days — credit, jobs and new customers. But most of all, the world is suffering from a shortage of optimism. As unemployment mounts, asset values deteriorate and governments scramble for solutions, most consumers and investors still don’t see the light at the end of the recession tunnel.
Except, that is, in China. Some economists and investors have turned mildly bullish on the Chinese economy. A February survey conducted by Merrill Lynch saw the number of fund managers who believed China’s growth would be lower in the next 12 months shrink drastically. Jing Ulrich, chairman of China securities at JPMorgan in Hong Kong, noted after client meetings that “attitudes toward China’s efforts to counter the economic slump seem to have turned more positive.” The happy mood also showed up in Chinese stocks. By mid-February, the Shanghai stock market had surged more than 30% since the beginning of the year, making it the world’s best performer. (The index has fallen off slightly since.)
