Executive Briefings

California Ports, Like the Rest of the World, Hit by Cooling Chinese Economy

After months of careful tinkering aimed at slowing China's supercharged economy, Chinese officials may have gotten more than they bargained for: The nation's economic engine is decelerating with alarming speed.

Industrial production in April hit its slowest pace in more than three years, while growth in exports sputtered and imports were flat.

In response, China's central bank said it would ease reserve requirements for the nation's banks. The move frees about $70bn for lending to stimulate the economy. But some economists said more aggressive action was required to keep China from a hard landing.
A sharp downturn in China would be a blow for the global economy and in particular California, which has long been a beneficiary of booming trade with China.

The deceleration is already being felt at Southern California ports. In the first three months of this year, container traffic through the ports of Los Angeles and Long Beach was up just 0.6 percent compared with the first quarter of 2011, largely because of slowing shipments from China.

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Industrial production in April hit its slowest pace in more than three years, while growth in exports sputtered and imports were flat.

In response, China's central bank said it would ease reserve requirements for the nation's banks. The move frees about $70bn for lending to stimulate the economy. But some economists said more aggressive action was required to keep China from a hard landing.
A sharp downturn in China would be a blow for the global economy and in particular California, which has long been a beneficiary of booming trade with China.

The deceleration is already being felt at Southern California ports. In the first three months of this year, container traffic through the ports of Los Angeles and Long Beach was up just 0.6 percent compared with the first quarter of 2011, largely because of slowing shipments from China.

Read Full Article