China Archives - Page 18 of 54

Is Slowing Chinese Economic Growth Gaining Momentum?

China’s manufacturing shrank in March, adding to the mounting evidence that China’s economy may be stalling and cooling off much more quickly than previously predicted.

According to a report by ABC News, China’s manufacturing activity did not just slow, but it actually shrank in March. The HSBC/Markit Flash China Manufacturing Purchasing Managers’ Index (PMI) issued a report noting an 11-month low of 49.2 in Chinese factory activity for March. Anything below a mark of 50 indicates contraction, while 50 and above indicates sector growth.

Vice Premier Sees Positive Economic Signs for China

Vice Premier Zhang Gaoli said his country’s economy is stabilizing, with gains in such areas as the service sector and employment. Economic growth expects to retract from 7.4 percent last year to 7 percent in 2015, a 25-year low.

Achieving Middle-Income Growth in China’s Slowing Economy

The Chinese economy grew by 7.4% in 2014 and expects to grow by 7.0% this year. These are impressive growth rates for any country but lower than past years’ achievements. For three solid decades, since the beginning of market reforms in the late 1970s, the economy expanded by an annual average of almost 10%.

China Rejects U.S. Corn and Turns to Ukraine

China has ordered 600,000 tons of corn from Ukraine for 2015. The Chinese previously rejected the U.S. brand in 2014, which contained an unacceptable genetically modified trait.

Foreign Investors Slowly Turn their Backs on China

Nokia is shifting operations from China to Vietnam because sales of the Lumia smartphone have not increased domestically, forcing the company to slash 9,000 jobs. Analysts point to a larger trend of foreign companies turning away from the Chinese.

China’s Economic Crossroad

China’s GDP growth rate is decelerating, due to international headwinds, property markets and local debt. Nevertheless, China’s long-term potential remains impressive, as reflected by the new growth target.

As the 5,000 members of the two sessions – the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) – listened to Premier Li Keqiang in Beijing, the message was clear.

China Flirts with a Middle Income Trap

As China appears to be flirting with the middle income trap, the old development model is becoming increasingly unworkable. In its place, the ‘new normal’ is emerging as a valuable notion. But to work it needs increased corporate competition, integrated labour markets, sharper land rights for farmers, and much less debt accumulation. On these points, Chinese policies fall short and are risk trapping China at middle income.

China’s SOE Foreign Investment Process, not Sinister, but Complicated

China’s international energy investments and acquisitions have drawn much interest from foreign observers. Some analysts tend to believe that it represents a national energy procurement strategy driven by the central government.

China’s Labor Market Adaptation to Slower Growth

As long as the labor market remains resilient and structural reforms deepen, the living standards of individual Chinese will continue to rise fast.

China’s central bank cut the benchmark deposit and loan interest rates by 25 basis points from Sunday, which has been widely interpreted as an effort to prop up economic growth, which has been slowing.

China’s Xi’s Speedy Power Consolidation in all Domains

When China’s President Xi Jinping took up his position in 2012, the Chinese Communist Party (CCP) lacked political leadership. His predecessor, Hu Jintao, had lost control of political power long before holding the 18th Party Congress. The result was a simmering political struggle that included Bo Xilai setting up his own kingdom in Chongqing and Zhou Yongkang openly violating the law. Just over two years later, Xi’s current position is a testament to his ability to consolidate his own power and his vision for China’s future.