The Shock Wave of the Wall Street Financial Storm

Jogging alone the lake in my neighborhood after dinner, I overheard a conversation before two women, both of whom, with vegetable shopping bags in hands, are ordinary mid-aged Chinese women. “Have you heard about the U.S. government’s new financial policy?” “Yes, I heard that they are pouring billions of dollars, and the congress is still voting for it.” “How I hope it works!” “Yes, I do too.”

What evokes such roaring enthusiasm for world economy? Since the countries “reform and open” policies taken into effect two decades ago, it’s the first time that Chinese are exposed to the world economic fluctuation. They are thrilled and curious in some sense. Besides, a major economic crisis smells too bloody for them to bear, even when it’s afar. As a generation that has witnessed the development of the country from poverty to prospect, they dread whatever force takes their fortunes away. The poignancy of starving is undeletable, and any prospect of returning to poverty is deplorable. Apart from the immediate interests that Chinese concern, the increasing intellectuals in the country form a populace with enough preliminary knowledge to understand issues like sublime lending.

All these give a rise to the fervor to study American economy in China, which indicate that for better or worse, it’s not as much a land insular from the world economic issues as it did years ago.

Undoubtedly with the contemporary international financial system, the financial crisis in the U.S. has its impact far beyond the U.S. border.

To what extent does the economic crises influences China? Actually, since the way Chinese captain joined the world market are mainly through stock market and bank loaning, and that China is lending rather than borrowing, the impact of the crisis is far less than other countries with the same system as the U.S. Although Chinese stock market shrink for seventy percent in the last few months and the real estate is on the declining, the problem is much of domestic rather than part of wall-street. (For China, the mystery that Chinese economy is fortified by the Olympic Games blows the economic bubbles so big that it eventually breaks.)
However, this assessment is unpopular among people. Eyes on the U.S. are intense.
“I’m thinking of applying a graduate school in the U.S. I’m really worried that the difficulties in economy may diminish the chances for me to get scholarships.” To Ying, a Chinese college student, the U.S. economy weighs much in her future.
“My company has business relationship with an American factory. Since their money is getting tighter, I’m taking growing risk too. They may stop paying at any time, yet, I can’t afford to stop my business with them, because the business is really important to me.” Li, the manager for a chemicals Imp&Exp company said with gloominess.
“I’m hoping that if America stock market warms up, Chinese market would revitalize too.” A middle aged man said. As many Chinese mid-class assaulted by the looses at stock market, it’s unbelievable how the good life they’re expecting is suddenly fading from their future.

Anyway, China is an active participator in World Economy nowadays. What can it contribute and gain? Let's wait and see.