China exports switch to internal middle class

Zero Hedge has the scoop:

Say goodbye to China's "export economy" paradigm. In a stunning development for trade hawks, and pretty much anyone who follows the biggest liquidity bubble in history, China Daily has announced China is about to announce a record trade deficit (yes, not surplus, deficit) for March. This makes the whole CNY undervaluation debate pretty much moot, as even China now moves into the ranks of net importers. From China's official daily newspaper: "The country will probably see a "record trade deficit" in March thanks to surging imports" and "will "fight back" if Washington labels China a currency manipulator." Perhaps this finally explains where all the excess liquidity has gone: with China now not exporting to the US consumer, it has instead refocused on its own "middle" class.

Good for them, and good for the Chinese middle class. Now let the middle class have open opportunities to invest. This kind of rebalancing is what the globe needs.