Stocks around the world have risen in the hope that China will build on its efforts to restore growth. That's in response to Chinese premier Wen Jiabao pledging that China will hit its 8% growth target.
But let's just get real here. China is not going to get us out of this mess and anyone who thinks that is just stupid. For a start, China is dependent on a rebound in the US economy. That's what's required to drive its exports. And no-one is expecting that to happen and until the US fixes its banks and property market, there will be no rebound. as 24/7 Wall Street points out, China will go nowhere without the without the US, Japan, UK, and EU consumers going out to buy again. Any boost from China's stimulus package will be short-lived because the odds are stacked against it.
As investor Jim Rogers told Bloomberg, we can't expect China to pull the global economy out of this hole. Anyone who thinks otherwise is kidding themselves.
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