by Fons1 via FlickrBig ticket items like cars and apartments have a problem as Chinese consumers delay purchases, says Shanghai-based lawyer Amy Sommers in a podcast, from her car on the way to Pudong Airport in Shanghai. But the central government is adjusting its policies to avert a full blown crisis like elsewhere in the world.
Consumer spending is going strong, but for real estate, the automotive industry and the export policies will change to avoid that current delays in big ticket spending spills over into 2009, Sommers says. She sees the stronger Renminbi as the main reason for the downturn in export and expects the Chinese currency will weaken, as the government changes its monetary policies.
We lost Amy Sommers shortly and finish our conversation by discussing the plans of the government to increase spending in infrastructure. No crisis management, says Sommers, but a long term strategy.