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Hog Wild asked in Social ScienceEconomics · 9 years ago

If America just suddenly for whatever reason stopped buying stuff from china, how would the Chinese economy?

look? Just like it was before? Worse? Better?

Update:

Are there any sources with stats supporting that? I agree, but I would really like some info proving, or disproving?

3 Answers

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  • 9 years ago
    Favorite Answer

    The Chinese economy would tank, because exports to the US constitute a significant chunk of their economy. It would be a brutal recession, rampant unemployment, mass layoffs.

  • 5 years ago

    Many motives: a million. a number of them would by utilising chinese American, so in simple terms as American as you're 2. in the experience that they are truthfully from China, most of the stuff would no longer be accessible decrease back homestead no matter if it become made there because those issues were made only for the yank marketplace. no matter if it become accessible decrease back in China, the expenses of Western manufacturers of clothing are frequently higher because they're uncommon in China 3. they'd be paying for souvenirs..

  • ?
    Lv 5
    9 years ago

    USA is a petrol backed dollar, which China holds a lot of.

    Because the American dollar is the reserve currency around the world anything that prompted major holders of the US dollar to dump it would likely cause the OPEC countries to switch currencies too.

    The US dollar would no longer be backed by oil.

    This would likely cascade and the USA would be getting all their dollars returned to them. This would cause massive inflation in USA and even more pressure to dump the dollar internationally.

    In effect, shutting down trade with China would result in the collapse of the American dollar.

    Source(s): Read up on the Triffin Dilemma
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