Question/Comment: Do countries such as China, which are so dependent on a healthy stable U.S. economy, react to counter downward trends in the U.S. economy (e.g., recession)? If so, what kinds of steps do they take?
Paul Solman: Yes, they certainly seem to. U.S. consumer spending still represents the biggest market for all those Chinese factories and their products. What do they do to protect themselves? Diversify their customer base. The real key would be to sell to their own people. That’s why there’s been so much talk of trying to get the Chinese government to persuade (induce? coerce?) its people to save less and spend more, meaning spend more at home.
