Why should the rest of the world worry if Chinas economy is growing too fast?
If Beijing cannot cool down the economy to acceptable levels, it might be forced to slash government spending on infrastructure and cut back on bank credits. In that case, growth could slow dramatically — and the effect would be felt around the world. China is replacing Japan as Asia’s most important economy, and the country has become vital to corporations everywhere. Germany’s exports to China — mostly of capital goods — are expected to rise 20% this year, to $24 billion, well ahead of its $14 billion in exports to Japan, according to the Association of German Chambers of Commerce & Industry. Some 14% of Motorola’s sales, or $3.7 billion, came from China in 2002. The country accounted for virtually all of Volkswagen’s sales growth last year. Samsung Electronics expects to sell $8 billion worth of chips, flat screens, cell phones, and consumer electronics there this year — about 12% of its total, vs. the 20% the company sells in the U.S. To get a taste of what could happen, consid
