More stimulus isn't the answer to China problems

FEW buzz phrases scare economists more than "new paradigm". If such things existed, Japan would still dominate the world economy, risk would have been eliminated from Wall Street, and the euro would have spread boundless prosperity from Berlin to Athens. So why do so many market observers continue to insist that basic principles of growth and stability don't apply to China? News that exports fell 3.3 per cent year on year in January, while imports fell 19.9 per cent - the most in more than five years - don't seem to have fazed many analysts. Bloomberg China economist Tom Orlik points out that the numbers may have been skewed by pre-Lunar New Year buying last year and a crackdown on mis-invoicing...

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