EconomicsChina: Observer: China is decreasing trade, while re-balancing by increased domestic demand

David L. Bahnsen, an investor advisor, is watching China's internal economic balance.  I got this from The Bahnsen Group Weekly Commentary (July27,2k12).  It's a free email newsletter from David.

— Economix, refWrite Frontpage economics, business, & labour

David has an item focussing on China's economy and some structural shifts there:

What are you noticing in your analysis of China this month?

The slowdown in growth has been about what I expect so far, and I continue to believe that the outcome of this slowdown is one of the biggest things to pay attention to in the current macro environment.  But one thing I do find interesting is that the recent 7.6% GDP number China posted (a slowdown, for sure, but not worse than I expected thus far) reflected a 0.6% reduction for external trade slowdown.  That means that domestic demand actually grew over 8%.  China's ability to re-balance their economy into one less export-dependent is the $5 trillion question over there.  I am going to follow these developments religiously.