China International Political Economy

China automobile sales in May rose 34% to help boost the China economy according to Reuters.

The positive Chinese economic news is not only a clear sign that Chinese domestic spending is beginning to help offset the decline in exports but also adds another blow to the floundering US economy as the global recession has pulled US auto sales down by an equal 34%.

A key driver to the increase in car sales are China government incentives which are targeted towards certain models that include smaller more energy efficient engines.