The Balcony Box

Commentary on global economic theatre

Chinese auto sales

David, 5 May 2009 § 0

Chinese statistics are said to be generally unreliable, but presumably sales results from General Motors can be trusted–so it’s interesting that GM reported record sales in China for the month of April, up 50% year-on-year.  This provides additional support for the view that China’s massive stimulus measures and expansionary monetary policy have succeeded in getting the party started again.  Michael Pettis sees a risk that the party could get out of control.  I’m skeptical that the government will risk taking away the punchbowl, for fear of provoking a riot.  That could mean drunken revelry on a massive scale.

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