economic recovery – Bizchina Update http://bizchina-update.com/ Sun, 27 Mar 2022 00:45:16 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bizchina-update.com/wp-content/uploads/2021/10/icon-120x120.jpg economic recovery – Bizchina Update http://bizchina-update.com/ 32 32 The Chinese economy accelerates in January-February; Omicron cases cloud outlook https://bizchina-update.com/the-chinese-economy-accelerates-in-january-february-omicron-cases-cloud-outlook/ Tue, 15 Mar 2022 06:17:00 +0000 https://bizchina-update.com/the-chinese-economy-accelerates-in-january-february-omicron-cases-cloud-outlook/ Industrial production Jan.-Feb. +7.5% y/y vs f’cast +3.9% Retail sales +6.7% y/y vs f’cast +3.0% Investment in fixed assets +12.2% y/y, vs f’cast +5.0% Strength may not last as COVID cases jump – analysts BEIJING, March 15 (Reuters) – China’s economy rebounded in the first two months of 2022, with key indicators all beating analysts’ […]]]>
  • Industrial production Jan.-Feb. +7.5% y/y vs f’cast +3.9%
  • Retail sales +6.7% y/y vs f’cast +3.0%
  • Investment in fixed assets +12.2% y/y, vs f’cast +5.0%
  • Strength may not last as COVID cases jump – analysts

BEIJING, March 15 (Reuters) – China’s economy rebounded in the first two months of 2022, with key indicators all beating analysts’ expectations, although an increase in Omicron business, weak real estate and heightened global uncertainties weigh on the outlook.

Industrial production rose 7.5% in January-February from a year earlier, the fastest pace since June 2021 and up from a 4.3% increase seen in December, Tuesday showed data from the National Bureau of Statistics. This compared to a 3.9% rise expected by analysts in a Reuters poll.

Retail sales, a lagging indicator of consumption since the hit of COVID-19, rose 6.7% year-on-year amid rising demand during the Lunar New Year holidays and the Olympics. winter. It also marked the fastest clip since June last year and beat expectations for a 3.0% rise in the poll.

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It posted a 1.7% gain in December.

The surprisingly strong performance of the world’s second-largest economy in the new year may have enabled the People’s Bank of China (PBOC) to keep its policy rates stable on Tuesday, said Iris Pang, chief economist for Greater China at ING, in a note.

The PBOC kept its one-year medium-term lending rate unchanged earlier in the day, dashing expectations of a cut, although investors believe policymakers may soon resume monetary easing to support the slowdown. economy. Read more

The statistics released combine economic data from January to February to help smooth out distortions caused by the Lunar New Year holiday, which fell in early February this year.

One of the data highlights was strong retail sales growth, which was boosted by sales of Winter Olympics-related products, such as ski gear and ice sports, Fu said. Linghui, spokesperson for the statistics bureau, at a press conference.

Bing mascot Dwen Dwen was an unexpected star of the Beijing Olympics, with thousands of fans queuing in sub-freezing temperatures to buy goods – from magnets and key rings to bags and soft toys – and factories scrambling to make more. Read more

The strong numbers came after growth lost momentum throughout last year due to a liquidity crunch in the housing market and stringent anti-virus measures that hit consumption.

“Indeed, every data point has bounced back, mainly because the political effects started early this year, with an easing in the infrastructure and real estate sectors. Restoration spending also remained relatively strong,” said Qu Qing, chief economist at Jianghai Securities.

However, analysts warn that any nascent recovery, which would help China reach an ambitious target of around 5.5% for 2022, could not be sustained due to the surge in COVID cases, a weak real estate market and the uncertain global recovery. Read more

Chinese stocks fell sharply on Tuesday as a rise in coronavirus cases overshadowed data and threatened the outlook.

“The momentum of economic recovery in January-February has been good. At the same time, we must also see that the external environment is still complex and severe, and China’s economic development faces many risks and challenges. “said Mr. Fu from the statistics office.

Analysts expect the central bank to continue to ease policy to support the economy.

“We still need to cut interest rates and reserve requirement ratios as soon as possible. There should be no hesitation in supporting easing policies,” said Wang Jun, chief economist at Zhongyuan Bank.

Premier Li Keqiang said last week that he was confident of achieving the economic growth target of around 5.5% for this year despite challenges including the war in Ukraine. Li also promised to provide more political support during the year. Read more

RESUMPTION OF INVESTMENTS IN INFRASTRUCTURES

Investments in fixed assets rose 12.2% in January-February from a year earlier, compared with a 5.0% increase predicted by a Reuters poll and 4.9% growth in 2021. The figure was the highest since July last year.

Investments in infrastructure rose 8.1%, helped by the move to this year’s early-loading 2022 local government special bonds.

Real estate investment rose 3.7% year on year in the first two months of 2022, following a 13.9% plunge in December, the data showed.

The slowdown in the housing market has also shown signs of easing, but sales are still mired in contraction while new construction starts have fallen by double digits.

“We continued to stabilize land prices, house prices and expectations, and there were positive changes in the real estate market,” Fu said.

China’s property market cooled last year as Beijing’s deleveraging drive triggered a liquidity crunch in some major property developers, leading to bond defaults, plummeting stock prices and suspended or suspended projects. left unfinished.

“The resurgence of COVID in several provinces is an additional drag on activity growth. Despite the relaxation of local real estate policy, real estate indicators, in particular new housing starts and land sales, have continued to Further policy easing would be needed to meet the challenging roughly 5.5% ‘growth target this year,’ Goldman Sachs analysts wrote in a note.

The national survey-based unemployment rate rose to 5.5% in February from 5.3% in January, but Fu said the rise was largely due to seasonal factors and the rate could drop after March.

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Additional reporting by Ellen Zhang, Liangping Gao and Ryan Woo; Editing by Sam Holmes, Bernard Orr

Our standards: The Thomson Reuters Trust Principles.

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How rising US interest rates will challenge the Chinese economy https://bizchina-update.com/how-rising-us-interest-rates-will-challenge-the-chinese-economy/ Sun, 30 Jan 2022 08:00:00 +0000 https://bizchina-update.com/how-rising-us-interest-rates-will-challenge-the-chinese-economy/ A sharp about-face by President Xi Jinping suggests China is in crisis mode as rising interest rates pose a serious threat to its economy. In the years leading up to the pandemic, Chinese President Xi Jinping warned that the global economy was facing challenges and that a Black Swan event posed a serious risk to […]]]>

A sharp about-face by President Xi Jinping suggests China is in crisis mode as rising interest rates pose a serious threat to its economy.

In the years leading up to the pandemic, Chinese President Xi Jinping warned that the global economy was facing challenges and that a Black Swan event posed a serious risk to the Chinese economy and the world.

Since the start of the pandemic, the People’s Bank of China, financial regulators and senior Chinese Communist Party leaders have further intensified their calls for consideration of systemic risk, as growing concerns about developments in global financial markets have were expressed last year.

But in recent months, the mood has changed considerably.

President Xi’s U-turn

In a virtual address atop the agenda of the World Economic Forum in Davos in mid-January, President Xi sent a very clear message to the US Federal Reserve and its Chairman, Jerome Powell: Please, don’t raise interest rates.

“If major economies slow down or reverse course in their monetary policies, there would be serious negative fallout. They would present challenges to global economic and financial stability, and developing countries would bear the brunt,” Xi said. .

With US inflation currently running at 7% a year and inflation posing a growing risk to post-pandemic economic recovery around the world, Xi’s comments run counter to the intentions of many. growing number of central banks, including the US Federal Reserve.

Growing risks in China

Although we can only speculate on the reasons for the change in the narrative coming out of Beijing, it is clear that risks are developing within the Chinese economy.

The Chinese government’s crackdown on the riskiest elements of its real estate sector has had a major impact on the industry, demand for materials and the economy in general.

According to a recent report by investment bank UBS, housing starts were down 31% year-on-year in December.

With the real estate sector and associated industries accounting for nearly a third of China’s GDP, there are growing fears that problems within the industry could cause a broader slowdown in the economy.

As risks continue to accumulate and growth in the consumer-driven elements of the economy deteriorates, this has created a rather ironic and, in some ways, contradictory set of circumstances.

One foot on the accelerator, one foot on the brake

Despite the economic difficulties that the Chinese government’s much-needed attempts to rein in risks in the real estate sector have created, they have so far refused to significantly alter course.

However, with so much of China’s economic fortune in the real estate sector, the Chinese government had only a simple choice, accept much weaker growth figures or find another engine of economic expansion.

Given the vastness of the Chinese economy and the practical impossibility of replacing real estate-led growth with sufficient domestic consumption in the short term, Beijing has been left with a very familiar option that it has largely previously used, the construction of infrastructures.

This is yet another departure from the course established by Beijing.

Under the leadership of President Xi’s predecessor, former President Hu Jintao, Hu Jintao reiterated the need for China to rebalance its economy away from capital investment and construction towards a more market-driven growth model. consumer.

Even in the middle of last year, the Chinese government halted work on two high-speed rail projects worth 130 billion yuan ($29 billion), due to concerns over rising debt. local governments.

Now that risks within the global economy continue to pile up and the true extent of China’s economic slowdown is becoming clear, Beijing is not just putting its foot back on the accelerator of infrastructure construction. , he puts his foot to the floor.

In megalopolis Shanghai, a full year of infrastructure and investment bonds will be issued by the end of June.

For the 2022 calendar year, Beijing has allocated a quota of 1.46 trillion yuan ($326 billion) in local government special bonds, as the country seeks to boost investment in local infrastructure and steady economic growth.

Local governments recently issued 190 billion yuan ($42 billion) worth of bonds in just one week, according to a report by Yuan Talks, a Chinese economy- and market-focused media outlet.

The course of Chinese monetary policy has also changed significantly in recent days, with the People’s Bank of China (PBOC) cutting the benchmark one-year lending rate twice in as many months for the first time in a short time. after the start of the pandemic.

Australia’s Fortune

In recent years it has been said that Australia’s economic fortunes rest on a bulk carrier and with up to half of all exports going to China, the Middle Kingdom’s economic fortunes have certainly come to define ours.

The trillion-dollar question that could define Australia’s economic fortunes in 2022 could be this: Can Chinese infrastructure building fill the inevitable hole that will be left by the real estate sector if Beijing continues on its path? current?

With Omicron still a major factor affecting the Chinese economy significantly and the IMF warning of a slowing global economy, the outlook is bleak at best.

As the Chinese government’s strategy continues to evolve, they no doubt have their finger on the panic button. They have already cut interest rates and flouted caution in increasing local government debt. New measures to stimulate growth may require an even greater degree of action.

Ultimately, if the US Federal Reserve raises interest rates in March as markets expect, against President Xi’s advice, China could face tough economic dilemmas in 2022.

Tarric Brooker is a freelance journalist and social commentator | @AvidCommentator

Read related topics:China

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Chinese economy: MOFCOM: foreign trade hits a new high in 2021 https://bizchina-update.com/chinese-economy-mofcom-foreign-trade-hits-a-new-high-in-2021/ Thu, 27 Jan 2022 08:00:00 +0000 https://bizchina-update.com/chinese-economy-mofcom-foreign-trade-hits-a-new-high-in-2021/ China has become the world’s second-largest consumer market, the largest trader of goods for five consecutive years and the second-largest destination for foreign direct investment in 2021, the Chinese ministry announced on Tuesday. of Commerce during a press conference while unveiling the affairs of the country. and business performance for 2021. Yang Shanshan has more. […]]]>

China has become the world’s second-largest consumer market, the largest trader of goods for five consecutive years and the second-largest destination for foreign direct investment in 2021, the Chinese ministry announced on Tuesday. of Commerce during a press conference while unveiling the affairs of the country. and business performance for 2021. Yang Shanshan has more.

Despite COVID-19, China’s foreign trade hit new highs in 2021, with total imports and exports up 21.4 percent to RMB 39.1 trillion, or about $6 trillion. However, China’s Ministry of Commerce warns that the global economy still faces uncertainties in 2022.

LI XINGQIAN Head of Department of Foreign Trade Ministry of Commerce “The pandemic continues and there is still a risk of supply chain cuts, which could slow down the global economic recovery. We will support trade enterprises, diversify trade routes, use the international e-commerce platform to promote trade, improve the digitalization of trade, and develop green trade.

In 2021, China’s domestic consumption gradually recovered, and the total retail sale of consumer goods increased by 12.5%. As the world’s second-largest consumer market, consumption has remained the main driver of China’s economy. China also becomes the second largest destination for foreign direct investment in 2021, as well as a major global investor.

CHEN CHUNJIANG Head of Trade Service Department Ministry of Commerce “We will continue to reform and open up to the rest of the world. We will ease the automotive industry and provide land and tax policy to attract more foreign investors to invest in high-tech industries, advanced manufacturing, digital and green economy, as well as low-carbon technologies. carbon. We will also help foreign companies to solve their difficulties in China.

YANG SHANSHAN CGTN Reporter “To help support China’s economic growth, China promises to improve the business environment for investors and promote global trade through bilateral and multilateral cooperation. Yang Shanshan, CGTN.
Source: CGTN

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China’s economy grew 8% in 2021, but property and virus threats loom: poll https://bizchina-update.com/chinas-economy-grew-8-in-2021-but-property-and-virus-threats-loom-poll/ Sat, 15 Jan 2022 08:00:00 +0000 https://bizchina-update.com/chinas-economy-grew-8-in-2021-but-property-and-virus-threats-loom-poll/ This file photo taken on December 16, 2021 shows a man waiting to cross a road in Beijing’s central business district. China’s economy grew at its fastest pace for 10 years in 2021, according to an AFP analyst poll, but its strong recovery from the Covid-19 pandemic is threatened by Omicron and a slowdown in […]]]>

This file photo taken on December 16, 2021 shows a man waiting to cross a road in Beijing’s central business district. China’s economy grew at its fastest pace for 10 years in 2021, according to an AFP analyst poll, but its strong recovery from the Covid-19 pandemic is threatened by Omicron and a slowdown in the economy. real estate sector. -AFP photo

China’s economy grew at its fastest pace for 10 years in 2021, according to an AFP analyst poll, but its strong recovery from the Covid-19 pandemic is threatened by Omicron and a slowdown in the economy. real estate sector.

The 8% growth would be well above the government’s target of more than 6%, and comes after a strong start to the year as a ‘zero-Covid’ policy has enabled the country to lead the global economic recovery.

China’s exports jumped nearly 30% last year on strong global demand as countries reopened from pandemic lockdowns, boosting its faltering economy.

But the country’s recovery in the second half of 2021 has been hampered by a series of epidemics – with authorities reimposing strict containment measures – as well as power outages caused by an emissions reduction campaign, supply chain problems and soaring energy costs.

While forecasts point to good annual growth – compared to 2.3% in 2020 – these problems have slowed down factory activity and led to the closure of businesses.

They have been compounded by a debt crackdown in the real estate sector, which accounts for a large part of the economy.

“The key factors (…) were the impact of power cuts, the slowdown in the residential construction sector and the moderation in retail sales,” said Rajiv Biswas, chief economist for the Asia region. Pacific at IHS Markit.

Analysts reported growth of just 3.5% year-on-year for the fourth quarter, compared to 4.9% the previous three months and 7.9% from April to June.

And headwinds from the slowdown in the construction sector, as well as the impact of Covid measures on consumer spending, will likely act as a “significant drag” on growth this year, Biswas added.

Beijing is on high alert as it prepares to host the Winter Olympics next month, with its zero Covid policy fueling lockdowns, border restrictions and lengthy quarantines.

“The current resurgence of the coronavirus poses significant downside risks to China’s economic recovery…under the government’s zero-tolerance approach,” said ANZ Research’s chief economist for the Great Britain. China, Raymond Yeung.

Yeung noted that Ningbo Port, the world’s third-busiest, was facing disruptions as cases led to truck entry restrictions, suspension of container cargo operations and roadblocks.

“These delays and backlogs could exacerbate shipping cost inflation and put pressure on export volumes,” he told AFP.

Another major port city – Tianjin – was hit by an Omicron cluster in January, the first time the virus strain was found in the community in China.

Analysts expect China will not ease its policy before the end of the Games.

Stay-at-home orders in the industrial heartland of Xi’an likely also disrupted manufacturing activities, Citibank said, as the city of 13 million was placed under a severe lockdown in December.

Uncertainties surrounding the real estate sector have also accelerated the cooling of fixed asset investment, DBS Bank economists said, adding that “tension will persist in the face of rising financial strains.”

Already, two-thirds of the top 30 real estate companies by sales have crossed one of “three red lines” set by regulators, DBS analysts Nathan Chow and Eugene Leow said in a recent report, referring to different debt ratios aimed at reducing leverage.

The crackdown that began in late 2020 dealt a heavy blow as developers – primarily Evergrande – plunged into liquidity crunches, raising concerns among investors and homebuyers.

“Reports of increased developer liquidity issues and construction or delivery delays will only further undermine confidence,” DBS analysts said.

This year, authorities hit some of the country’s largest companies with new restrictions and regulations, targeting concerns such as national security and allegations of monopolistic behavior.

But Macquarie economists expect authorities to return to “supporting growth” this year, with some signs that shifting priorities will reduce pressure on the property sector.

“It doesn’t mean regulation has ended, but it does mean the peak of regulation, the peak of property crunch and the peak of decarbonization are behind us,” said economists Larry Hu and Xinyu Ji.

Gene Ma, head of China research at the Institute of International Finance, said: “We expect further monetary easing and greater fiscal expansion this year.”

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China’s economy slows as virus outbreaks disrupt recovery https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery-4/ Wed, 15 Dec 2021 08:00:00 +0000 https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery-4/ BEIJING (AP) — China said Wednesday its economy slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions. Retail sales were weaker than in October and inflationary pressures are complicating efforts to spur growth at a time when developers’ tightening borrowing limits are dampening construction and sales in the all-important real estate […]]]>

BEIJING (AP) — China said Wednesday its economy slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions.

Retail sales were weaker than in October and inflationary pressures are complicating efforts to spur growth at a time when developers’ tightening borrowing limits are dampening construction and sales in the all-important real estate sector. .

The Beijing Winter Olympics from February 4 to 20 are likely to have “limited overall impact”, National Bureau of Statistics spokesman Fu Linghui told reporters, as pandemic restrictions limit travel and other activites.

Fu said the global environment was becoming “more complex and severe”, but China still expects to meet its economic targets for this year.

The new coronavirus was first reported in China and the ruling Communist Party has defended its success in containing the pandemic. Sporadic outbreaks and the emergence of new variants of the virus remain a constant challenge for both public health policies and the country’s economic recovery.

Concerns have been raised about the economic price paid to keep the virus under control through repeated lockdowns and other strict measures, including limits on international travel.

The economy grew at a surprisingly slow annual rate of 4.9% in July-September, compared to 7.9% in April-June.

In November, retail sales increased by 3.9% over the previous year, against 4.% the previous month. Industrial production picked up only slightly, rising 3.8% last month from 3.5% in October.

Leaders promised tax cuts and support for entrepreneurs after the campaign to curb rising corporate debt sparked bankruptcies and defaults among property developers.

Investors are waiting to see what happens to Evergrande Group, according to a developer analyst, which looks increasingly likely to default on $310 billion in debt. Small developers defaulted on millions of dollars in debt or went bankrupt.

Meanwhile, a crackdown on what regulators say is improper behavior by Chinese tech giants, including Alibaba Group, the world’s biggest e-commerce platform, has prompted jittery investors to slash more than 1,000 billions of dollars the price of their shares abroad.

Fu seemed to dismiss these concerns.

“With the coordination of pandemic prevention and control and economic and social development, as well as the effective implementation of macro policy adjustments, the major economic and social development goals for this year are expected to be achieved,” he said. he declared. “There is still strong support for the economy to overcome the difficulties and remain stable next year.”

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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China’s economy slows as virus outbreaks disrupt recovery https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery-3/ Wed, 15 Dec 2021 08:00:00 +0000 https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery-3/ BEIJING (AP) — China said Wednesday its economy slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions. Retail sales were weaker than in October and inflationary pressures are complicating efforts to spur growth at a time when developers’ tightening borrowing limits are dampening construction and sales in the all-important real estate […]]]>

BEIJING (AP) — China said Wednesday its economy slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions.

Retail sales were weaker than in October and inflationary pressures are complicating efforts to spur growth at a time when developers’ tightening borrowing limits are dampening construction and sales in the all-important real estate sector. .

The Beijing Winter Olympics from February 4 to 20 are likely to have “limited overall impact”, National Bureau of Statistics spokesman Fu Linghui told reporters, as pandemic restrictions limit travel and other activites.

Fu said the global environment was becoming “more complex and severe”, but China still expects to meet its economic targets for this year.

The new coronavirus was first reported in China and the ruling Communist Party has defended its success in containing the pandemic. Sporadic outbreaks and the emergence of new variants of the virus remain a constant challenge for both public health policies and the country’s economic recovery.

Concerns have been raised about the economic price paid to keep the virus under control through repeated lockdowns and other strict measures, including limits on international travel.

The economy grew at a surprisingly slow annual rate of 4.9% in July-September, compared to 7.9% in April-June.

In November, retail sales increased by 3.9% over the previous year, against 4.% the previous month. Industrial production picked up only slightly, rising 3.8% last month from 3.5% in October.

Leaders promised tax cuts and support for entrepreneurs after the campaign to curb rising corporate debt sparked bankruptcies and defaults among property developers.

Investors are waiting to see what happens to Evergrande Group, according to a developer analyst, which looks increasingly likely to default on $310 billion in debt. Small developers defaulted on millions of dollars in debt or went bankrupt.

Meanwhile, a crackdown on what regulators say is improper behavior by Chinese tech giants, including Alibaba Group, the world’s biggest e-commerce platform, has prompted jittery investors to slash more than 1,000 billions of dollars the price of their shares abroad.

Fu seemed to dismiss these concerns.

“Through the coordination of pandemic prevention and control and economic and social development, as well as the effective implementation of macroeconomic policy adjustments, the major economic and social development goals for this year are expected to be achieved. “, did he declare. “There is still strong support for the economy to overcome the difficulties and remain stable next year.”

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China’s economy slows as virus outbreaks disrupt recovery https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery-2/ Wed, 15 Dec 2021 08:00:00 +0000 https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery-2/ The Beijing Winter Olympics from February 4-20 are likely to have “limited overall impact”, National Bureau of Statistics spokesman Fu Linghui told reporters, as pandemic-related restrictions limit travel and other activities. Fu said the global environment was becoming “more complex and severe”, but China still expects to meet its economic targets for this year. The […]]]>

The Beijing Winter Olympics from February 4-20 are likely to have “limited overall impact”, National Bureau of Statistics spokesman Fu Linghui told reporters, as pandemic-related restrictions limit travel and other activities.

Fu said the global environment was becoming “more complex and severe”, but China still expects to meet its economic targets for this year.

The new coronavirus was first reported in China and the ruling Communist Party has defended its success in containing the pandemic. Sporadic outbreaks and the emergence of new variants of the virus remain a constant challenge for both public health policies and the country’s economic recovery.

Concerns have been raised about the economic price paid to keep the virus under control through repeated lockdowns and other strict measures, including limits on international travel.

The economy grew at a surprisingly slow annual rate of 4.9% in July-September, compared to 7.9% in April-June.

In November, retail sales increased by 3.9% over the previous year, against 4.% the previous month. Industrial production picked up only slightly, rising 3.8% last month from 3.5% in October.

Leaders promised tax cuts and support for entrepreneurs after the campaign to curb rising corporate debt sparked bankruptcies and defaults among property developers.

Investors are waiting to see what happens to Evergrande Group, according to a developer analyst, which looks increasingly likely to default on $310 billion in debt. Small developers defaulted on millions of dollars in debt or went bankrupt.

Meanwhile, a crackdown on what regulators say is improper behavior by Chinese tech giants, including Alibaba Group, the world’s biggest e-commerce platform, has prompted jittery investors to slash more than 1,000 billions of dollars the price of their shares abroad.

Fu seemed to dismiss these concerns.

“Through the coordination of pandemic prevention and control and economic and social development, as well as the effective implementation of macroeconomic policy adjustments, the major economic and social development goals for this year are expected to be achieved. “, did he declare. “There is still strong support for the economy to overcome the difficulties and remain stable next year.”

(Copyright 2021 by The Associated Press. All rights reserved.)

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China’s economy slows as virus outbreaks disrupt recovery https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery/ Wed, 15 Dec 2021 08:00:00 +0000 https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery/ Job : December 15, 2021 / 03:12 MST / Update: December 15, 2021 / 4:14 a.m. MST Workers wearing face masks sew fabric at a garment factory in Shenyang, northeast China’s Liaoning Province, Tuesday, Dec. 14, 2021. China reported on Wednesday, Dec. 15, 2021, that its economy had slowed in November, rocked by coronavirus outbreaks, […]]]>

Job :
Update:

Workers wearing face masks sew fabric at a garment factory in Shenyang, northeast China’s Liaoning Province, Tuesday, Dec. 14, 2021. China reported on Wednesday, Dec. 15, 2021, that its economy had slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions. (Chinatopix via AP)

BEIJING (AP) — China said Wednesday its economy slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions.

Retail sales were weaker than in October and inflationary pressures are complicating efforts to spur growth at a time when developers’ tightening borrowing limits are dampening construction and sales in the all-important real estate sector. .

The Beijing Winter Olympics from February 4 to 20 are likely to have “limited overall impact”, National Bureau of Statistics spokesman Fu Linghui told reporters, as pandemic restrictions limit travel and other activites.

Fu said the global environment was becoming “more complex and severe”, but China still expects to meet its economic targets for this year.

The new coronavirus was first reported in China and the ruling Communist Party has defended its success in containing the pandemic. Sporadic outbreaks and the emergence of new variants of the virus remain a constant challenge for both public health policies and the country’s economic recovery.

Concerns have been raised about the economic price paid to keep the virus under control through repeated lockdowns and other strict measures, including limits on international travel.

The economy grew at a surprisingly slow annual rate of 4.9% in July-September, compared to 7.9% in April-June.

In November, retail sales increased by 3.9% over the previous year, against 4.% the previous month. Industrial production picked up only slightly, rising 3.8% last month from 3.5% in October.

Leaders promised tax cuts and support for entrepreneurs after the campaign to curb rising corporate debt sparked bankruptcies and defaults among property developers.

Investors are waiting to see what happens to Evergrande Group, according to a developer analyst, which looks increasingly likely to default on $310 billion in debt. Small developers defaulted on millions of dollars in debt or went bankrupt.

Meanwhile, a crackdown on what regulators say is improper behavior by Chinese tech giants, including Alibaba Group, the world’s biggest e-commerce platform, has prompted jittery investors to slash more than 1,000 billions of dollars the price of their shares abroad.

Fu seemed to dismiss these concerns.

“With the coordination of pandemic prevention and control and economic and social development, as well as the effective implementation of macro policy adjustments, the major economic and social development goals for this year are expected to be achieved,” he said. he declared. “There is still strong support for the economy to overcome the difficulties and remain stable next year.”

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Chinese Economy Slows As Virus Outbreaks Disrupt Recovery | Madison.com Health, Sports Health & Fitness https://bizchina-update.com/chinese-economy-slows-as-virus-outbreaks-disrupt-recovery-madison-com-health-sports-health-fitness/ Wed, 15 Dec 2021 08:00:00 +0000 https://bizchina-update.com/chinese-economy-slows-as-virus-outbreaks-disrupt-recovery-madison-com-health-sports-health-fitness/ [ad_1] Workers wearing face masks sew fabric at a garment factory in Shenyang, northeast China’s Liaoning Province, Tuesday, December 14, 2021. China announced Wednesday, December 15, 2021 that its economy has slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions. Uncredited – stringer, CHINATOPIX PA BEIJING (AP) – China on Wednesday […]]]>


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Workers wearing face masks sew fabric at a garment factory in Shenyang, northeast China’s Liaoning Province, Tuesday, December 14, 2021. China announced Wednesday, December 15, 2021 that its economy has slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions.


Uncredited – stringer, CHINATOPIX


PA

BEIJING (AP) – China on Wednesday said its economy slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions.

Retail sales were weaker than in October and inflationary pressures are complicating efforts to stimulate growth at a time when tightening borrowing limits by developers is slowing construction and sales in the all-important real estate sector.

The Beijing Winter Olympics from Feb. 4 to 20 are likely to have “limited impact overall,” National Statistics Bureau spokesman Fu Linghui told reporters as pandemic restrictions limit travel and other activities.

Fu said the global environment is becoming “more complex and harsher,” but China still hopes to meet its economic targets for this year.

The novel coronavirus was first reported in China, and the ruling Communist Party has championed its success in bringing the pandemic under control. Sporadic epidemics and the emergence of new viral variants remain a constant challenge for both public health policies and the country’s economic recovery.

Concerns have been expressed over the economic price paid to keep the virus under control through repeated lockdowns and other strict measures, including limits on international travel.

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The world is watching China’s economy heading for historic slump https://bizchina-update.com/the-world-is-watching-chinas-economy-heading-for-historic-slump/ Tue, 16 Nov 2021 08:00:00 +0000 https://bizchina-update.com/the-world-is-watching-chinas-economy-heading-for-historic-slump/ [ad_1] “In the event of a longer-lasting zero COVID policy in China or a much deeper real estate slowdown, GDP growth in 2022 could drop to 4%,” said Tao Wang, chief economist for China at UBS, in a note. China’s real estate sector is the biggest question mark in the economy due to its enormous […]]]>


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“In the event of a longer-lasting zero COVID policy in China or a much deeper real estate slowdown, GDP growth in 2022 could drop to 4%,” said Tao Wang, chief economist for China at UBS, in a note.

China’s real estate sector is the biggest question mark in the economy due to its enormous scale – more than 900 million square meters of apartments are built each year, according to official data.

This investment, as well as the production of related sectors such as steel and cement production, represent between 20 and 25% of China’s GDP, economists estimate. Any slowdown – or outright decline – in real estate development would leave a void in the economy that expansion into no other sector could easily fill.

The Chinese real estate sector is the biggest question mark on the economy.Credit:Getty Images

“The slowdown in real estate in China is a major headwind for the global economy as it is likely to be the biggest headwind for the Chinese economy next year,” said Larry Hu, chief economist for China at Macquarie Group.

Real estate construction fueled China’s V-shaped economic recovery from the pandemic, but the sector contracted this summer after Beijing orchestrated a mortgage slowdown that brought real estate developers such as China Evergrande Group to the edge of bankruptcy.

The most dramatic drop was seen in newly launched housing projects, the steel-intensive part of real estate development, which fell more than 33% year-on-year in October, the largest drop on record.

Real estate developers get most of their financing by selling houses to households before they are built. A decline in mortgage lending and growing pessimism in the household real estate market are causing sales to fall.

China’s real estate sector is the biggest question mark in the economy due to its enormous scale – more than 900 million square meters of apartments are built each year, according to official data.

While the People’s Bank of China announced a slight increase in mortgage lending in October, “the government is not rushing to revive even if housing starts collapse,” said Rosealea Yao of Gavekal Dragonomics. Beijing’s recent announcement of trying a property tax to discourage home buying as an investment will further hurt sales confidence, she added.

As a result, several economists are forecasting a 10% drop in new housing starts next year. But because Beijing is concerned about the risks to social stability if developers are unable to complete pre-sold projects, officials will try to ensure existing projects are completed. This means that overall investment in real estate could increase next year even if sales and housing starts decline.

Morgan Stanley projects real estate investment growth of 2% next year, which would be down sharply from an 8% rate before the pandemic. Others, like UBS, are more pessimistic and forecast a 5% drop.

Slowdown could last for years: Goldman Sachs expects the housing sector to reduce GDP growth by 1 percentage point per year through 2025.

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Although Beijing has a lot of control over the housing market, there is still a possibility that the slowdown has some self-reinforcing momentum that could be difficult for authorities to control, leading to an even sharper slowdown than more pessimistic forecasts. For example, Chinese households tend to avoid real estate purchases when prices fall, which can lead to lower sales and more price cuts.

If Beijing is serious about resolving imbalances in the real estate market, it would require a “multi-year slowdown in construction activity, which will certainly slow the economy given the weight of the real estate sector,” said Logan Wright of Rhodium Group. “Much still depends on what Beijing will do in the coming months. “

Bloomberg

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