China’s economic distress deepens as lockdowns drag on
2 years, 7 months ago

China’s economic distress deepens as lockdowns drag on

Live Mint  

HONG KONG : China’s economy descended deeper into a Covid-induced doldrums last month, raising questions about whether Beijing’s planned stimulus measures can prevent a prolonged downturn. Consumer spending and factory output tumbled in April, while growth in infrastructure investment—which Beijing has been counting on to prop up growth this year—slowed sharply, China’s National Bureau of Statistics reported on Monday. The surveyed urban unemployment rate, China’s headline measure of joblessness, exceeded the official 5.5% target for the second consecutive month in April, climbing to 6.1%—the highest since February 2020’s 6.2%. Fu Linghui, an official at China’s statistics bureau, said Monday that the challenges facing the economy have “exceeded expectations," though he expressed optimism that the difficulties would prove to be short-term. Zhaopeng Xing, senior China strategist at investment bank ANZ, said China’s economy faces two challenges: The room for monetary easing is narrowing and business and consumer sentiment is deteriorating.

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History of this topic

China to raise fiscal deficit next year to support struggling economy
10 hours, 59 minutes ago

China to raise fiscal deficit next year to support struggling economy

Live Mint  

China, the world's second-largest economy, plans to raise fiscal deficit to boost spending in 2025 to support its struggling economy, reported AFP, citing state media. In 2024, China took several measures to boost economic growth, such as cutting interest rates, cancelling restrictions on buying houses and easing the debt burden on local governments. According to economists, more direct fiscal stimulus …

China pledges more borrowing and interest rate cuts to counter Trump’s tariff threats
1 week, 5 days ago

China pledges more borrowing and interest rate cuts to counter Trump’s tariff threats

CNN  

China pledged Thursday to increase the budget deficit, borrow more and loosen monetary policy to maintain stable economic growth as it girds for more trade tensions with the United States where Donald Trump is returning as president. A separate readout from state news agency Xinhua, watched by financial markets for references to the yuan currency, kept a pledge to “maintain …

China fine tunes economic stimulus as it braces for new US administration
2 weeks, 4 days ago

China fine tunes economic stimulus as it braces for new US administration

Associated Press  

BANGKOK — China is fine-tuning policies to rev up its economy as it braces for uncertain relations with the United States under President-elect Donald Trump, giving manufacturers a 20% made-in-China price advantage in sales to the Chinese government. The moves come ahead of a top-level annual economic planning conference scheduled for next week that will help set China’s strategy for …

Bailing out China's economy has suddenly become more urgent
1 month, 1 week ago

Bailing out China's economy has suddenly become more urgent

ABC  

Beijing is clearly rattled. Trump's trade war timetable If Donald Trump lives up to his word, China is expected to lose its World Trade Organisation 'favoured nation status' with the US, as a first step, before imposing tariffs on the country and then, possibly, the rest of the world. "We are assuming a 60 per cent tariff hike on about …

After $1.4 trillion package, China to cut homebuying taxes to revive ailing economy
1 month, 1 week ago

After $1.4 trillion package, China to cut homebuying taxes to revive ailing economy

Firstpost  

In the latest step to support ailing economy, China is expected to cut taxes for buying homes, according to Bloomberg In the latest step to support its ailing economy, China is expected to cut homebuying taxes, according to Bloomberg. The decision to cut homebuying taxes would come days after the announcement of a $1.4 trillion package to bail out local …

Will China attempt economic revival markets seek post-COVID with multi-trillion-yuan initiatives?
1 month, 2 weeks ago

Will China attempt economic revival markets seek post-COVID with multi-trillion-yuan initiatives?

Live Mint  

China is expected to unveil significant economic measures Friday at the conclusion of the National People's Congress Standing Committee meeting, aiming to revive its struggling economy, AP reported. Analysts believe China may need substantial, multi-trillion-yuan initiatives to reinvigorate growth in the world’s second-largest economy, which has yet to recover fully from the COVID-19 pandemic. Any new spending or economic boost …

China has been plunged into a major financial crisis - this is how it could damage the investments in YOUR pension or Isa: JOHN-PAUL FORD ROJAS
1 month, 3 weeks ago

China has been plunged into a major financial crisis - this is how it could damage the investments in YOUR pension or Isa: JOHN-PAUL FORD ROJAS

Daily Mail  

China is in a major economic crisis - perhaps the most serious since it set out on its dizzying trajectory of economic growth more than four decades ago. The People's Bank of China is taking action against a screeching slowdown in economic growth by cutting interest rates and offering more support to banks and the housing sector 'It is fair …

$1.80 dinners and budget clothes? The spread of frugality is hurting China’s economy
2 months ago

$1.80 dinners and budget clothes? The spread of frugality is hurting China’s economy

LA Times  

China’s 1.4 billion consumers once spent with enough abandon to help drive the global economy. While the bigger factor is a worsening real estate downturn, which has eroded demand for commodities and diminished a crucial vehicle for household wealth and investment, economists say China’s economy is unlikely to recover without a rise in domestic spending. Chinese consumers are going through …

Economy: Xi Jinping’s stimulus package is too weak for China to be healthy
2 months ago

Economy: Xi Jinping’s stimulus package is too weak for China to be healthy

Slate  

This week: Big trouble in not-so-little China as the second-largest economy tries to get out of its post-COVID funk. Emily Peck, Elizabeth Spiers, and Reuters’ Anna Szymanski discuss China’s new economic stimulus measures, which might be too-little, too late. They also discuss the secretive family behind Boar’s Head and a Sherwood piece about a mysterious $7 billion estate tax. Finally, …

China’s economy grows at a 4.6% rate in the last quarter, falls short of the official target
2 months ago

China’s economy grows at a 4.6% rate in the last quarter, falls short of the official target

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. The latest data show the world’s second largest economy …

Home Sales Soar in Major Chinese Cities as Stimulus Measures Boost Sentiment
2 months ago

Home Sales Soar in Major Chinese Cities as Stimulus Measures Boost Sentiment

China Daily  

Home sales in major Chinese cities have seen a rebound this month, as a series of recent stimulus measures have boosted homebuyer sentiment. The market has been bolstered by lower mortgage rates, lower down payment ratios, and relaxed purchase restrictions. This has led to a surge in home sales, particularly in major cities like Beijing, Shanghai, and Guangzhou. The stimulus …

Here’s How Bad China’s Economy Really Is. Can It Be Fixed?
2 months, 1 week ago

Here’s How Bad China’s Economy Really Is. Can It Be Fixed?

Bloomberg  

China’s economic growth target of 5% this year is looking ambitious, given sluggish consumer spending, an uncertain outlook for the country’s exports and a still shaky property market. Fewer than a fifth of economists surveyed by Bloomberg Terminal Bloomberg were predicting gross domestic product would expand by 5% in 2024, as analysts at lenders such as Bank of America Corp. …

Hong Kong's Hang Seng Index plunges 9.4%, highest fall since 2008; here's why
2 months, 2 weeks ago

Hong Kong's Hang Seng Index plunges 9.4%, highest fall since 2008; here's why

Live Mint  

Hang Seng Index of Hong Kong has dropped by 9.4 per cent, which is its biggest decline since 2008. {{^adFree}} {{/adFree}} Previously, Zheng Shanjie, the Chairperson of China's National Development and Reform Commission, stated that China was "fully confident" of accomplishing economic targets for 2024 and will use 200 billion yuan from next year's budget to fund investment projects and …

China factory surveys show economy weakening, as Beijing steps up support
2 months, 3 weeks ago

China factory surveys show economy weakening, as Beijing steps up support

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy China's economy weakened further in …

Xi Jinping pledges ‘forceful’ rate cuts to halt China’s economic crisis
2 months, 4 weeks ago

Xi Jinping pledges ‘forceful’ rate cuts to halt China’s economic crisis

The Telegraph  

Xi Jinping has called for the introduction of “forceful” interest rate cuts as the Chinese president battles to kickstart the stuttering economy. In a rare admission from China’s leadership, officials said the world’s second-largest economy was facing fresh turmoil as they vowed to inject greater levels of fiscal stimulus. It follows a series of measures laid out by the People’s …

China's central bank unveils most aggressive stimulus since pandemic
2 months, 4 weeks ago

China's central bank unveils most aggressive stimulus since pandemic

Hindustan Times  

* China's central bank unveils most aggressive stimulus since pandemic PBOC to cut rates, RRR and provide more property market support * China facing deflationary pressures, growth target at risk * Analysts say more fiscal stimulus needed to restore confidence By Ryan Woo and Liangping Gao BEIJING, Sept 24 - China's central bank on Tuesday unveiled its biggest stimulus since …

Economists sceptical about China's rate cuts, new stimulus measures
2 months, 4 weeks ago

Economists sceptical about China's rate cuts, new stimulus measures

ABC  

China has announced a raft of measures aimed at countering a prolonged downturn in its property market that is heavily weighing on the world's second largest economy. Dr Shi said it was "very likely" that China would fail to meet its yearly GDP growth target of roughly 5 per cent. The central government was even encouraging local governments to invest …

China's central bank cuts bank reserve rates, pledges other moves to help the economy
3 months ago

China's central bank cuts bank reserve rates, pledges other moves to help the economy

Hindustan Times  

The Chinese central bank announced Tuesday a slew of measures aimed at reviving the sluggish economy, mainly by tackling a downturn in the property sector. China's central bank cuts bank reserve rates, pledges other moves to help the economy People’s Bank of China Gov. Pan Gongsheng said the reserve requirement for banks would be cut by 0.5 percentage points and …

Top Chinese economist disappears after criticising Xi Jinping
3 months ago

Top Chinese economist disappears after criticising Xi Jinping

The Telegraph  

But Xi’s efforts to prop up China’s economy cheered investors on Tuesday, with the Shanghai Shenzhen CSI Index rising 4.3pc – its biggest jump since July 2020. Mr Yu added: “Given the confidence issues among households and corporates, we doubt the measures are sufficient to jump-start the credit engine.” Lynn Song, ING’s chief economist for Greater China, said without extra …

China's economy softens in August as Beijing continues to grapple with lagging demand
3 months, 1 week ago

China's economy softens in August as Beijing continues to grapple with lagging demand

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy China’s economy softened in August, …

Experts call for further restoring consumer sentiment
4 months, 1 week ago

Experts call for further restoring consumer sentiment

China Daily  

Customers select fruit at a supermarket in Dongying, Shandong province, earlier this month. LIU ZHIFENG/XINHUA Restoring consumer sentiment and revitalizing confidence among consumers will be among the key priorities for China's economic growth for the rest of this year, as policymakers shift their focus more toward seeking a consumer-led recovery, according to experts. "Although the economy still faces several headwinds, …

China's factory output disappoints, dashing hopes for speedy recovery
4 months, 1 week ago

China's factory output disappoints, dashing hopes for speedy recovery

The Hindu  

China's factory output growth slowed and missed expectations in July, adding to a series of indicators that show the world's second-largest economy is struggling to kick into a higher gear, even with recent government support. "The data shows that the economy has gotten off to a weak start in the second half of the year, and it is expected that …

China’s economy fails to pick up after worst stretch in five quarters
4 months, 1 week ago

China’s economy fails to pick up after worst stretch in five quarters

Hindustan Times  

China’s weakening economic momentum failed to pick up as sluggish confidence weighs on consumption and investment, putting the government’s annual growth target at risk. “It tells us that maybe one day, the weakness in the demand-side will return to bite the other side.” The latest snapshot of the $17 trillion economy shows domestic demand is barely benefiting from recent government …

Economists advocate direct support to consumers
4 months, 1 week ago

Economists advocate direct support to consumers

China Daily  

Tourists visit a cultural block in Xiangyang, Hubei province, June 10, 2024. China's central government should consider additional direct support to consumers worth at least 1 trillion yuan — either cash or vouchers — in the rest of the year to effectively address the pressing challenge of lackluster domestic demand, economists from government-backed think tanks said. Consumption — which contributed …

Economists advocate direct support to consumers
4 months, 1 week ago

Economists advocate direct support to consumers

China Daily  

By ZHOU LANXU and OUYANG SHIJIA | China Daily | Updated: 2024-08-13 09:25 Tourists visit a cultural block in Xiangyang, Hubei province, June 10, 2024. China's central government should consider additional direct support to consumers worth at least 1 trillion yuan — either cash or vouchers — in the rest of the year to effectively address the pressing challenge of …

Economists advocate direct support to consumers
4 months, 1 week ago

Economists advocate direct support to consumers

China Daily  

Tourists visit a cultural block in Xiangyang, Hubei province, June 10, 2024. China's central government should consider additional direct support to consumers worth at least 1 trillion yuan — either cash or vouchers — in the rest of the year to effectively address the pressing challenge of lackluster domestic demand, economists from government-backed think tanks said. Consumption — which contributed …

To revive the economy, China wants consumers to buy better stuff
4 months, 2 weeks ago

To revive the economy, China wants consumers to buy better stuff

Live Mint  

Everywhere you look, the world’s politicians face tough economic choices. A survey by China’s central bank in April showed that over 60% of city-dwellers want to increase the amount in their savings accounts. America’s cash-for-clunkers programme, introduced in 2009 during the global financial crisis, prompted 360,000 extra car purchases in two months, according to Atif Mian of Princeton University and …

China cuts 1-year benchmark rate and doubles subsidies for EVs in its ‘cash for clunkers’ program
4 months, 4 weeks ago

China cuts 1-year benchmark rate and doubles subsidies for EVs in its ‘cash for clunkers’ program

Associated Press  

BANGKOK — China ratcheted up its effort to reinvigorate its slowing economy Thursday by unexpectedly cutting a key policy rate and also doubling subsidies for electric vehicles bought to replace older cars. The People’s Bank of China said it cut its lending rate for one-year medium term policy loans by 20 basis points to 2.3%. Major state-run banks cut deposit …

China’s Communist Party charts technology- and security-focused development for reviving the economy
5 months, 1 week ago

China’s Communist Party charts technology- and security-focused development for reviving the economy

Associated Press  

BANGKOK — In a year of major elections that will determine the destinies of many countries, China’s ruling Communist Party is holding closed, top-level meetings in Beijing to set strategies for reviving its slowing economy. State broadcaster CCTV said the agenda for this year’s meetings is to study and endorse “all-around deepening reforms.” Nearly a half-century after the late leader …

China’s economy slowed in the last quarter as weak consumer demand dragged on growth
5 months, 1 week ago

China’s economy slowed in the last quarter as weak consumer demand dragged on growth

Associated Press  

BANGKOK — China’s economy expanded at a slower-than-forecast 4.7% annual rate in the last quarter, the government reported Monday, while emphasizing signs of improvement in factory output, income and investment. “Since the beginning of this year, global economic growth momentum has been weak, inflation is sticky, geopolitical conflicts, international trade frictions and other problems have occurred frequently, domestic demand is …

Economists see need for more stimulus
7 months, 3 weeks ago

Economists see need for more stimulus

China Daily  

A robot operates equipment on the assembly line of an automaker in Xi'an, Shaanxi province. YUAN JINGZHI/FOR CHINA DAILY Chinese industrial firms' smaller first-quarter profits have raised concerns over their uneven recovery and heightened the need for additional stimulus measures to reignite demand and address structural issues, economists said. Robin Xing, chief China economist at Morgan Stanley, said while exports …

China's key economic indicators pick up pace
9 months ago

China's key economic indicators pick up pace

China Daily  

China's economy gained more steam in the first two months of 2024 with improvement in key indicators, including production and investment, the National Bureau of Statistics said on Monday. China's value-added industrial output - a gauge of activity in the manufacturing, mining and utilities sectors - grew by 7 percent in the January-February period from a year earlier after a …

China's key economic indicators pick up pace
9 months ago

China's key economic indicators pick up pace

China Daily  

China's economy gained more steam in the first two months of 2024 with improvement in key indicators, including production and investment, the National Bureau of Statistics said on Monday. China's value-added industrial output - a gauge of activity in the manufacturing, mining and utilities sectors - grew by 7 percent in the January-February period from a year earlier after a …

China doubles down on moves to mend its economy and fend off a financial crisis
10 months, 4 weeks ago

China doubles down on moves to mend its economy and fend off a financial crisis

Associated Press  

BANGKOK — China’s leaders launched a barrage of new policies this week to prop up languishing financial markets and rekindle growth in the world’s second-largest economy. The Chinese economy grew at a 5.2% annual pace in 2023, exceeding the government’s target, and many indicators including factory output and retail sales show signs of improvement. Premier Li Qiang chaired a meeting …

China goes for cash infusion in economy, cuts cash reserve ratio
11 months ago

China goes for cash infusion in economy, cuts cash reserve ratio

Firstpost  

China’s central bank is set to reduce the required reserve ratio for banks from February, marking the first such cut for the year. People’s Bank of China Governor Pan Gongsheng said on Wednesday at a press conference in Beijing that the bank would cut the reserve requirement ratio for all banks by 50 basis points, adding the move would free …

Chinese shudders: Fewer people is bad news
11 months ago

Chinese shudders: Fewer people is bad news

Live Mint  

For an economy already caught in a slowdown, Wednesday’s release of China’s population data made it a double whammy. China’s covid toll was estimated at about 11.1 million last year and 10.4 million in 2022. It now faces an adverse demographic turn, with fewer people who can contribute to economic activity even as an elderly bulge adds to its welfare …

China’s big banks cut deposit rates as growth plateaus
1 year ago

China’s big banks cut deposit rates as growth plateaus

Live Mint  

China’s biggest banks are lowering the deposit rates offered to savers, a move that could pave the way for the central bank to make interest-rate cuts to spur economic growth. “Lower deposit rates should help alleviate pressures on banks’ net interest margins and lay the groundwork for the PBOC to cut its policy lending rates in January, which have been …

China's Xi Jinping says economic recovery 'still at critical stage', lists measures for revival
1 year ago

China's Xi Jinping says economic recovery 'still at critical stage', lists measures for revival

Firstpost  

“It is necessary to focus on accelerating the construction of a modern industrial system, expand domestic demand, prevent and defuse risks,” said Xi As sluggish domestic activity and property sector woes drag on a post-pandemic rebound, President Xi Jinping on Friday said that China’s economic recovery is at a “critical stage”. “At present, the country’s economic recovery is still at …

Moody’s cuts China credit outlook to negative, cites slowing economic growth, property crisis
1 year ago

Moody’s cuts China credit outlook to negative, cites slowing economic growth, property crisis

Associated Press  

HONG KONG — Credit rating agency Moody’s cut its outlook for Chinese sovereign bonds to negative on Tuesday, citing risks from a slowing economy and a crisis in its property sector. The outlook change also reflects the increased risks related to structurally and persistently lower medium-term economic growth,” Moody’s said in a statement. To offset the weaker property sector, China …

Why Xi Can No Longer Brag About the Chinese Economy
1 year, 1 month ago

Why Xi Can No Longer Brag About the Chinese Economy

Live Mint  

In 2021, Chinese President Xi Jinping popularized a slogan signifying China’s expected displacement of the U.S. as the world’s leading economic power: “The East is rising, the West is declining." China’s GDP may one day reach 90% or even 100% of the U.S.’s, but there’s no realistic scenario in which it reaches 150% or 200%, he said. He was signaling, …

Economic policy with Chinese characteristics
1 year, 1 month ago

Economic policy with Chinese characteristics

Hindustan Times  

China’s economy has been a tailspin recently that is the result of politics as much as of objective economic conditions. To take just the case of India, the massive telecom revolution in the country would not have been possible without access to cheap Chinese products – and one might add, China’s unscrupulous economic and trade practices of stealing tech, subsidising …

Chinese factory activity contracts in October as pandemic recovery falters
1 year, 1 month ago

Chinese factory activity contracts in October as pandemic recovery falters

Associated Press  

HONG KONG — An official survey of manufacturers shows China’s factory activity contracted in October, suggesting the economy remains on uneven footing. The purchasing managers’ index, or PMI, fell to 49.5 in October on a 100-point scale, down from 50.2 last month, according to the National Bureau of Statistics and the China Federation of Logistics & Purchasing. The non-manufacturing PMI …

Don’t rule out a financial crisis in China
1 year, 2 months ago

Don’t rule out a financial crisis in China

Live Mint  

The world’s second largest economy has a deflating property bubble, local governments struggling to pay their debts and a banking system heavily exposed to both. The problem isn’t with the central government but local governments that borrowed heavily via off balance-sheet financing vehicles to fund urban development projects. Logan Wright, director of China research at Rhodium Group, a research firm, …

China’s inflation data show economy in doldrums despite a slight improvement in trade
1 year, 2 months ago

China’s inflation data show economy in doldrums despite a slight improvement in trade

Associated Press  

HONG KONG — China’s economy remains in the doldrums, data released Friday showed, with prices falling due to slack demand from consumers and businesses. Friday’s data showed food prices dropped 3.2% in September, with the price of pork sliding 22% from a year earlier, a steeper decrease than the 17.9% drop in August. “September’s inflation data remind us that despite …

China economic data show signs slowdown may be easing, as central bank acts to support growth
1 year, 3 months ago

China economic data show signs slowdown may be easing, as central bank acts to support growth

Associated Press  

BEIJING — China’s factories picked up their pace and retail sales also gained momentum in August, the government reported Friday, suggesting the economy may be gradually recovering from its post-pandemic malaise. “Overall, in August, major indicators improved marginally, the national economy recovered, high-quality development was solidly advanced, and positive factors accumulated,” Fu Linghui, spokesperson for the National Bureau of Statistics, …

China’s economic slowdown, its ripple effect
1 year, 3 months ago

China’s economic slowdown, its ripple effect

The Hindu  

The news about China’s economic slowdown has caused mixed reactions. Speaking at the National People’s Congress in 2007, then Premier Wen Jiabao had cautioned that “the biggest problem with China’s economy is that the growth is unstable, unbalanced, uncoordinated, and unsustainable”. In a ‘new normal’, the ground realities When Mr. Xi says that China is the world’s second largest economy, …

Explained: Why China's economic meltdown is making the world nervous
1 year, 4 months ago

Explained: Why China's economic meltdown is making the world nervous

India Today  

China, the world's second-largest economy, is going through a tough time. For starters, China is a dominant global player across most global sectors, with the International Monetary Fund's latest World Economic Outlook predicting the country to contribute over 22 per cent of the global gross domestic product. Therefore, a decline in China's economic activity can severely throw off the global …

Explainer | How much worse can China's economic slowdown get?
1 year, 4 months ago

Explainer | How much worse can China's economic slowdown get?

The Hindu  

China's economic activity data for July, including retail sales, industrial output and investment failed to match expectations, fuelling concern over a deeper, longer-lasting slowdown in growth. Given China's debt-fuelled investment in infrastructure and property has peaked, and as exports are slowing in line with the global economy, China only has one other source of demand to tinker with: household consumption. …

Wall Street drops as faltering Chinese economy sets off global slide
1 year, 4 months ago

Wall Street drops as faltering Chinese economy sets off global slide

LA Times  

China’s recovery has faltered so much that it unexpectedly cut a key interest rate Tuesday and skipped a report on how many of its younger workers are unemployed. A sharp drop for Wall Street capped a day of declines around the world Tuesday after discouraging data on China raised worries about the global economy. But China’s recovery has faltered so …

China’s July exports tumble by double digits, adding to pressure to shore up flagging economy
1 year, 4 months ago

China’s July exports tumble by double digits, adding to pressure to shore up flagging economy

Associated Press  

BEIJING — China’s exports plunged by 14.5% in July compared with a year earlier, adding to pressure on the ruling Communist Party to reverse an economic slump. “Policymakers have pledged further policy support, which could buoy household spending and lead to an improvement in import growth for the coming few months.” Exports to the United States fell 23% from a …

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