Chinese Export Prices/Anecdotals

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>   (email exchange)
>   On Thu, Oct 1, 2009 at 7:27 AM, wrote:
>   May be of interest-from JPM China weekly-so much for lower dollar being inflationary!

Details suggest that:

the fall in export prices is rather broad-based across manufactured goods, including chemicals, metal products, machinery and

equipment, telecom products, autos, handbags, and shoes. Indeed, feedback from exporters in coastal areas showed that

although orders from the EU and the US have been increasing, importers are very sensitive to prices and have been negotiating

prices aggressively. The general trend is consistent with our view that although external demand, especially from the G-3

economies, is experiencing a cyclical rebound, the bounce is from unprecedented lows. As such, there is still plenty of slack in

the global economy and the large output gap is depressing the pricing power of producers everywhere.

and Japan has to be seeing the same thing.

Won’t surprise me if they start buying dollars and test the US admin’s resolve on that issue

Be nice if they do and help sustain our real terms of trade!