Higher foreign demand from today s trade surplus countries (China, Germany, and Japan, among others) could help restore some of the missing demand.

In this sense, China has a rare opportunity to expand its growth potential by stimulating domestic demand.

Much anxiety is directed toward growing demand for meat and dairy products in China and India.

China now stands ready to absorb some of that surplus saving to promote a shift toward internal demand.

The result will be to raise the prices of China s exports and fuel demand for imports.

Indeed, China s dilemma is emblematic of one of developing Asia s greatest challenges the need to tilt the growth model away from external toward internal demand.

There is no doubt that China currently is suffering from the global collapse in demand for a wide range of manufactured products.

The US has been pushing China, Germany, Japan, and others to raise consumption in order to boost demand.

Thus, firms in East Asia and Europe are benefiting more than firms in the US from increasing demand in China.

It intends to boost domestic demand and is committed to moving gradually toward greater exchange rate flexibility.

Global demand for energy, raw materials, and food is increasingly influenced by rising demand in China and India, whose combined population is 2.5 billion.

What China lacked was not demand for consumption goods, but a supply of high quality financial assets.

That will sharply reduce the pace of foreign exchange accumulation and cut into China s open ended demand for dollar denominated assets.

Due to the rapid growth of its economy, demand for steel has increased at very high rates. The major portion of the consumption growth is attributable to construction applications construction materials are estimated to account for over half of total steel demand.

The problem is that China has already done a lot to stimulate domestic demand, both through government spending and by directing its banks to lend.

They demonstrate clearly that China is prepared to compensate for export weakness by stimulating domestic demand.

China s potentially strong domestic demand base and ample room for policy maneuvers can help it to avoid a hard landing.

In the context of a recovering world economy, and given a sustained surge in demand from developing countries, particularly from China, India and countries of Latin America, world demand for oil grew steadily in 2004.

As long as China s commodity demand grows at a higher rate than global supply, prices will rise.

The Shanghai free trade zone s final objective is to help China exploit fully the demand potential of its domestic market.

Strong global demand, owing to emerging economies like China, has undoubtedly fueled some of the price increase.

This should help to solve the problem of insufficient demand for real estate, which could have led to the collapse of China s economy.

The increased profits are not a result of their mining prowess, but of China s huge demand for steel.

As China grows, its increasing size, wealth, and urbanization will continue to stoke demand for energy, grains, minerals, and other resources.

One is the great increase in energy demand from the rapidly growing economies of Asia, particularly China.

Post crisis sluggishness in US aggregate demand especially consumer demand is likely to persist, denying Chinese exporters the support they need from their largest foreign market.

The most difficult period for Chinese decision makers was between February and September 2008, when, despite abundant signs of a softening in domestic demand, overall demand remained strong, as did inflation.

There is a consensus that these abnormal demand patterns must change in the long term, as China moves to a consumption led growth model.

China was drafting a drug control law and, in recent years, had made remarkable progress in drug control enforcement and demand reduction.

There is no doubt that China currently is suffering from the global collapse in demand for a wide range of manufactured products. The sharp drop in retail sales in the United States and Europe means fewer orders for the goods produced in Chinese factories.

As a result, for a given increment of domestic demand, China is far more predisposed toward foreign sourcing.

That lack of spillover will reflect the recovery s focus on expansion of domestic demand.

Countries like China that have large surpluses will have to rely much more on domestic demand to fuel their economies.

To enhance domestic demand, Asia, including China, must reallocate resources and structurally transform the economy.

Ordinary Burmese well understand that their country s democratic transition is the direct result of its recoil from China s excessive demands on its natural resources.

Indeed, strong Chinese demand has supported its trading partners export led growth for much of the past three decades.

Governments role will be different in countries like China, where officials will guide a shift from dependence on external sources of growth to more balanced demand.

Meanwhile, the faltering European economy and slowing GDP growth in China and elsewhere are impeding export demand.

The fall in aggregate demand while potential aggregate supply has been rising because of overinvestment by China and other emerging markets will sharply reduce inflation.

But the majority of experts agree that the world will not run out of oil anytime soon even with growing Chinese and Indian demand.

A rebalanced China can grow more slowly for one simple reason By drawing increased support from services led consumer demand, China s new model will embrace a more labor intensive growth recipe.

As with most things in Asia nowadays, China holds the key to supplying Asia s missing consumer demand.

Indeed, China s 12th Five Year Plan is aimed at reducing dependence on exports and boosting domestic demand.

To manage exorbitant demand for financial and physical assets, China s leaders must address its root cause the low cost of capital.

Higher foreign demand from today s trade surplus countries (China, Germany, and Japan, among others) could help restore some of the missing demand. But that involves structural change in those economies as well, and thus will take time.