China's role in the global economic recovery Chinese delegates from across China attend the opening ceremony of the annual Chinese People's Political Consultative Conference (CPPCC) in the Great Hall of the People in Beijing March 3, 2012. China's leaders face a parliament meeting next week likely to bring into focus a deepening worry that they have squandered their chance for reform because of fears of instability ahead of the upcoming change in leadership. When the economy tanked in 2008, many top-flight economists said, "that's OK, we'll just do business with China until things get better." That kind of coat-tail strategy had good points and bad points. If Europe and Japan are both broke, it certainly makes sense to look for business elsewhere. In particular, U.S. automobile makers considered China a gold mine, where the burgeoning middle class was ripe for the picking. In fact, China's economy has been on a torrid pace for three decades and is only now applying the brakes, putting its growth target at 7.5 percent this year. The New York Times reported Tuesday that would be the slowest growth in 22 years. That 7.5 percent compares to 14.2 percent growth in 2007 and 10.4 percent growth in 2010, revealing a trend of slower expansion. Still, while President Barack Obama sets his sights on doubling exports and General Motors is able to maintain some semblance of growth with ventures in China, the data points to China as a solid drag on the U.S. economy. Just 0.6 percent of the U.S. gross domestic product in 2011 was represented by exports to China. In the same year, the U.S. trade deficit with China was roughly $320 billion. When GM does business with China there is very little, if any, gain for the U.S. economy or for U.S. workers in any capacity at all. A few long plane trips for a few GM executives. Otherwise, not much. Corporations are not hiring in the United States, no matter what the source of their revenue. As the Times points out, the impact of China on the U.S. economy also comes in the form of higher gasoline prices, given the increased demand for energy resources from emerging countries has been the most dynamic variable in petroleum pricing for the past few years. What's left is China's direct investment in U.S. companies and in the U.S. government. China is the largest single holder of U.S. debt, ending 2011 with a portfolio that includes $1.15 trillion in U.S. treasuries, slightly down from 2010. Data shows that China diversified its portfolio in the second half of 2011, becoming a net seller of U.S. debt in the final six months of the year. Analysts say that trend is unlikely to continue. There is still no safer bet than U.S. bonds. When the economy tanked in 2008, the critical point was not the United States deciding to do more business with China; it was a question of China continuing to do business with the United States. In international markets Tuesday, the Nikkei 225 index in Japan fell 0.63 percent, while the Shanghai composite index in China shed 1.41 percent. The Hang Seng index in Hong Kong dropped 2.16 percent, while the Sensex in India gave up 1.09 percent. The S&P/ASX 200 in Australia lost 1.37 percent. In midday trading in Europe, the FTSE 100 index in Britain lost 1.36 percent, while the DAX 30 in Germany lost 2.37 percent. The CAC 40 in France slipped 2.37 percent, while the Stoxx Europe 600 dropped 1.9 percent.