sub-prime crisis

397
352
3622
EU (27)
419
89 156 97 236 174
CIS
151
84
131 92
South and Central America
2 122
2 1
50
150
Middle East
132
138
Africa
74
93
40
103
Table 1:Trade Growth of Some East and Southeast Asian Economies,1995-2005
583 51.2 132 99.7 41.6 104
15.2 1.9 13.6 2.2 1.4 3.4 12.2 32.5 14.5 31.6 16.3 4.3 9.7 4.2 5 4.2
Hong Kong
Japan South Korea Singapore
186
469 136 126
259
505 252 196
(WTO, International Trade Statistics 2008).
Table 2: World Market Share (WMS) Changes of Exports for Selected Regions/Countries, 2005
Value Share in World Trade (%)
China
East Asian intra-regional
East Asia to China Declining in WMS
United States Japan
12.2 8.9
12 9.1
12.5 7.7
9.2 6
-3.3 -1.7
-3 -2.9
3 4.4
5.7 5
Table 3:
Merchandise Trade Balance of China, the US, Japan and Their Trading Partners (Billion US$), 1997-2007
China Indonesia India Malaysia Philippine Thailand
161 47.9 33.9 78.1 21.6 60.5
674 75.9 90.8 123 36.6 96.3
15.4 4.7 10.4 4.6 6 4.8
142 42.5 37 80.1 36.7 74.1
91.7 73.4 2.2 89.2
-210.5
-263.9
-366.4
-477.4
-450.1
-507.1
-578.3
-707.2
-828.4
-881.4
-857.9
China
Japan Six East Asian Traders
-53
-58.6 -23.7
-60.8
-67.2 -44.7
-74.7
and filing for bankruptcy of the country's largest sub prime lender, New Century Financial suffering from liabilities exceeding $100 million in April 2007.
16.4
-15.5 55.1
21.1
-18 47.5
22.5
-21.7 46
45.9
2.8 -30.5
44.9
6.3 -32.6
64.2
1.9 -46.9
85.2
-3.3 -72.3
115
-4.7 -96
156.1
1.9 -103
195.7
-3.6 -101
219.8
-9.1 -106.3
82.2 33.2 -
Trade with EU(27) Trade with Six East Asian Traders
Figure 4. Direction of Merchandise Export Flows (over total exports) of China
100% 80% 60% 40% 20% 0% 1997 Trade with The U.S. Trade with Japan Trade with ROW 2000 2003 2006 2007
107.5 42.4 -
107.6 52.4 -
99.7 71.5 -12.6 58.5
54.4 58.8 -15.5 37.7
79.5 61.7 -9.3 48.9
88.9 57.6 -2.6 59.4
111.1 65.1 -1.4 79
78.2 70.4 -10.1 79.9
67.9 77.8 -6.6 78.1
Trade with EU(27) Trade with Six East Asian Traders
The mounting trted States with its
trading partners could have an impact on the liquidity of its economy.
1990 1995 2000 2005
Share Change (%)
2000-2005 1990-2005
Annual Growth Rate (%)
2000-2005 1990-2005
Increasing in WMS East Asia (15) 13 1.9 4.2 0.8 17.9 3.1 7.1 1.6 19.2 4 7.3 1.7 21.7 7.7 9.1 2.9 2.5 3.7 1.8 1.1 8.7 5.8 4.9 2.1 12.3 25 14.6 21 11.5 18.2 13.4 17.8
Figure 2. Directions of Merchandise Export Flows (over total exports) of the U.S.
100% 80% 60% 40% 20% 0% 1997 2000 2003 2006 2007 Trade with North America Trade with China Trade with Six East Asian Traders Trade with EU(27) Trade with Japan Trade with ROW
Aim
To examine the issues relating to increasing economic integration of Asian economies with a focus on China and Japan.
•
• •
delineate the relationships among China, Japan and the United States in view of current trade imbalance and global financial and economic problems; review the major actions that have been undertaken by China, Japan and the Unites States in tackling the economic slump; suggest sustainable economic development strategies for China and the United States to achieve long–term economic stability and growth.
Global Financial Crisis and Economic Recession
Background
The American housing bubbles in terms of rising
mortgage delinquencies and foreclosures became apparent in late 2006 followed by the first subprime related writeoff of $10.5 billion by HSBC in February 2007;
3.4
0.7 6.4 4.5
209
354 147 134
266
450 232 176
2.4
2.4 4.7 2.8
6.6
11.3 18.7 19.7
1.3
-0.2 4.6 3.8
Taiwan
128
167
3.4
114
160
4.3
64.9
0.4

The United States, which is not included in Table 1, had an annual growth rate of 2% in exports and 4% in imports during the period of 2000-2007,
How China, Japan and the US Can Tackle the Current Economic Slump: From the Viewpoint of Asian Economic Integration
Eden S. H. Yu
City University of Hong Kong
The surplus of the trading partners of the United States is
likely to be used to buy the securities of the U.S.