I started writing about Chinese imports into the US over ago [China in the Midst of a Lewis Turning Point]. Total product imports started noticeably slowing in the second half of 2011 on a year over year basis and in the five year average, hiccuped back up late in the year. But going into the new year the dagger is in deep, as US imports are running well below the previous two years, and in fact is running a full third below the 5 year average. Once again there are regularly reports out of China about 15-25% wage increases for Chinese workers. The Shanghai shipping index I used to post has for all practical purposes gone down and stayed down. The export part of the Chinese economy is without question in hard landing. That leaves their housing bubble and it is not fairing much better. Australia’s inflated housing market is also popping and according to Steve Keene there is a lot of exposure.
source: Morgan Stanley