China’s slowdown in manufacturing activity and other vulnerabilities throughout Asia have weakened the region in the face of the European crisis. Its position as the stronghold against Europe’s devastating situation and the U.S.’s disappointing recovery is fading away.
Pascal Lamy of the World Trade Organization said Asia is becoming more and more “interconnected with the rest of the planet and I don’t think this relative immunity will be forever.
“I would expect, given what is happening in other parts of the world economy, this region to be more affected than it has been so far,” he continued.
And reality is confirming his suspicions at rapid speeds. Individuals and organizations are calling on the nations’ governments to boost their economies before the global situation worsens.
“China’s economic slowdown is more severe than expected. Export orders are continuing to fall, which is definitely related to Europe’s debt crisis,” said Citic Bank International Hong Kong’s Liao Qun. “Uncertainty in Europe is high. China needs to move faster and more aggressively to speed up loosening of its monetary and fiscal policies.”