In line with the tremendous increase in its domestic demand, China has absorbed an increasing amount of imports from neighbouring regions. For instance, Korea’s exports to China jumped 59.1% in the first quarter of 2010. Figures for Chinese Taiwan and Malaysia were 76.0% and 95.0%.
These may be selective presentations, but statistics show that China’s green shoots have benefited another economic giant, Japan, whose exports to China jumped 56.6% in the first three months of 2010. The Asian nations and regions learned a bitter lesson in the Asian Financial Crisis of 1997-1998, after which they accumulated ample foreign exchange reserves.