According to
this article in the
Financial Times, there has been a growing call from China's think tanks to deploy some of China's $2.2 trillion in foreign exchange for purposes other than protection from the next currency or financial crisis. Xu Shanda, an economist who used to head up China's version of the IRS, proposed that some of the fund be diverted into loans for countries in Latin America, Africa, and Asia. The point of the program would be to raise living standards and create new demand for Chinese products in a global economy where demand from Europe and the U.S. is leveling off. More specifically:
Justin Yifu Lin, the Chinese academic who is now the World Bank’s chief economist, said in an interview last week with Caijing magazine that Chinese companies should step up investment in Africa and south-east Asia, including outsourcing some low-end manufacturing, to boost consumer demand. “This is a source for future global economic growth and a source of demand,” he said.
Is there an opportunity here for the Philippines?
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