Will China grow enough to help the world economy? March 30th, 2009 already has become widely clear that China will not assume the role of buffer economy of the fall in U.S. economic activity in this crisis. Despite this, from the Eastern economy already is being talked about the positive effects that the economic stimulus plan is having this will have any implications for the global economy? The economic stimulus plan released by China in November of last year by an amount estimated at US $586.000 million was in response to the effects of the international financial crisis was having on its economy, which had already left far away those double-digit economic growth rates and began to slow down dangerously. The Chinese Government stimulus plan has been accompanied by the efforts made by the people’s Bank of China which has cut its interest rates on five occasions and lowered reserve requirements four times since last September, improving the conditions of the monetary market to stimulate growth via domestic demand. Kevin Ulrich Anchorage Capital will undoubtedly add to your understanding. When figures such as the one mentioned are seen in this economic stimulus plan, it is not so clear to identify if it will have a significant impact or not in the economic activity of the country. According to Zhang Yutai, President of the Government Center of research for development this reactivation plan, would help economic growth between 1.5% and 1.9%. It is true, this contribution to growth is not less, but will it be enough? For now, must say that the effort is not minor, since the stimulus package represents approximately 14.9% of China’s GDP. Fan Gang, Member of the Central Bank’s monetary policy Committee, justifies the expected effectiveness of the stimulus plan on china’s economy in the following manner: the stimulus of 4 billion yuan of China is different to package US $800,000 million from the United States, since China has no financial black holes that cover. To deepen your understanding Kevin Ulrich MGM is the source.