http://profitableinvestingtips.com/profitable-investing-tips/how-dependent-is-the-chinese-economy-on-exports How Dependent is the Chinese Economy on Exports? Weak Chinese trade data sent stocks down across the globe. According to The Wall Street Journal U.S. stocks were hit after the opening but pared their losses later in the day. The Dow Jones Industrial Average closed little changed Thursday, nearly recovering from an earlier 184-point drop that followed weak Chinese trade data. Official data released Thursday showed Chinese exports fell 10% year-over-year last month, sparking concerns about the world’s second-largest economy and global demand. Stocks around the globe fell and base metals such as copper tumbled. Investors moved to safe havens such as gold, U.S. government bonds and utility stocks. There are two aspects to this news. First is that if China exports fall it consumes fewer raw materials, buys fewer high tech equipment from Japan, Germany and the U.S.A. and consequently drives affected stocks down across the globe. The second thing is that China’s economy is slowing down because its economic growth was based on exponential growth of its export market. But the world is only so big and there is not a lot of room for the Chinese export market to grow, especially in a world that that is still slowly recovering in fits and starts from the Great Recession. Considering that China has become a cog in the global economic economy how dependent is the Chinese economy on exports and is there a way to fix that?