Posts Tagged Hu Jintao
China economy shows signs of strength
China released a series of figures on Sunday showing continued economic strength as it prepares for new leaders tasked with sustaining the country’s dramatic growth.
Production statistics and other figures released by China – including retail sales, fixed asset investment and inflation – all showed an improvement. Photo: EPA
12:47PM GMT 09 Dec 2012
The 10.1pc November increase follows rises of 9.6pc the previous month, 9.2pc in September and a three-year low of 8.9pc in August.
Overall growth has slowed for seven straight quarters in China. It hit 7.4pc in the three months through September, the weakest performance in more than three years.
But the production statistics and other figures released by the bureau – including retail sales, fixed asset investment and inflation – all showed an improvement.
The statistics – the first major economic figures to be released since the Communist Party held its pivotal congress last month – will be welcomed by the political elite as it prepares to usher in new leaders in March.
“Overall it’s a quite strong set of numbers, supporting our view of rebounding GDP growth,” said Lu Ting, China economist with Bank of America Merrill Lynch.
President Hu Jintao has called for efforts to strengthen domestic consumption in a bid to create a new growth model, echoing mounting calls for change to stabilise growth amid the slowdown.
Economists say the country faces mounting pressure to restructure its economy to ensure long-term growth, such as reducing its reliance on exports and boosting domestic consumption.
HSBC China economist Sun Junwei said Sunday’s figures have created favourable conditions to implement reforms under Beijing’s new leaders.
Xi Jinping replaced Hu as party chief last month and is strongly expected to succeed him as national president next March. The party’s new number two Li Keqiang is set to assume the premiership at the same time.
“The leaders will step up the reform efforts gradually in the coming quarters,” Sun said.
“There will not be drastic changes that will happen overnight, but the current recovery will create favourable conditions to accelerate these reforms next year.”
Other figures released on Sunday include retail sales, the main measure of consumer spending, which rose 14.9pc year-on-year in November from 14.5pc in October.
Fixed-asset investment, a key gauge of infrastructure spending, was up 20.72pc year-on-year in the first 11 months of 2012, from 20.7pc in January-October.
The consumer price index, the main measure of inflation, increased to an annual 2pc from a near three-year-low of 1.7pc in October, which will give lawmakers less room to loosen monetary policy.
Premier Wen Jiabao and Commerce Minister Chen Deming have both said in recent months that they expect China to achieve its targeted growth rate of 7.5pc this year despite the impact of the global slowdown.
China cut interest rates twice this year and has reduced the amount of funds banks must keep in reserve three times since last December, to encourage lending.
But it has avoided the kind of huge stimulus package it announced after the 2008-2009 global financial crisis, which sent inflation soaring.
- China pledges rural reforms to boost incomes, consumption (chinadailymail.com)
- China reports strong economy data (bbc.co.uk)
- China’s economy shows pick-up amid leadership transition (rappler.com)
- China Is Now In A Sweet Spot For Economic Growth (businessinsider.com)
- China economy shows signs of strength (telegraph.co.uk)
- China’s logistics industry picks up (nzweek.com)
- China: Diggers pile up unsold after Caterpillar adds capacity (chinadailymail.com)
- China’s recent trade statistics have been artificially inflated (chinadailymail.com)
- China’s non-manufacturing industries expand at a faster pace (chinadailymail.com)
- Quality, efficiency to feature in China’s economy (nzweek.com)
June 18, 2012
Something of a changing of the guard seems to be occurring at the G20 summit in Los Cabos, Mexico, today, where the big developing countries are taking on the role of wise, engaged parent while our leading politicians in the U.S. and Europe continue to act like children in denial.
Consider: In TV interviews yesterday, Mitt Romney–who may now be the frontrunner in the U.S. presidential race–made clear he wants nothing to do with Europe’s troubles, though they are already lapping at the front steps of the White House. Romney, sounding very much like a CEO who never really left Bain Capital in sensibility and spirit, told CBS: “I surely don’t believe that we should expose our national balance sheet to the vagaries of what’s going to be happening in Europe.”
OMG. “Our national balance sheet?”
What Romney seems to be saying is not just that he has no interest in bailing out Europe–as was reported yesterday–but also that he doesn’t even want to invest in Europe. Let’s avoid “exposure” in what is clearly a bad investment, my fellow men of Bain, and let the eurozoners go down together. Our “balance sheet” will be fine.
The problem with this view, of course, is that the president of the United States must oversee a globalized U.S. economy, not merely a national balance sheet, and its health is already intimately bound up in Europe’s similarly globalized economy in multifarious ways. According to a report from Citigroup last year, the correlation between U.S. quarterly GDP growth and that of the largest European economies has risen to 70 percent in the last decade, a leap upward from less than 20 percent correlation previously.
Romney’s Bain-esque appraisal of Europe’s problems seems even more benighted compared with that of other G20 countries such as China, Mexico and even Indonesia, which are issuing tough but well-nuanced advice to their former colonial masters.
China President Hu Jintao, in a written interview with a Mexican newspaper posted on the Chinese Foreign Ministry’s website today, urged the G-20 to adopt a “constructive and cooperative approach” and “encourage and support the European efforts and jointly provide confidence to the markets, “Bloomberg reported today.
Indonesian President Yudhoyono, meanwhile, expressed his hope in a speech that “our European colleagues will reach an agreement on rigorous methods to manage the crisis,” because otherwise the consequences will be “unsettling.”
Unsettling indeed. If the eurozone collapses, the U.S. and the world face not just the prospects of another economic downturn now, but a longer-term geopolitical future that could be far more unsettling. One only has to recall that, pre-unity, Europe turned the 20th century into one of the darkest in history, largely because of two European-generated world wars.
Will yet another American CEO president, if we end up with one, understand these stakes as well as he does America’s balance sheet?
- Will President Romney be the Bain of Europe’s Existence? (decoded.nationaljournal.com)
- Could This Stat Sink His Campaign? (dailyfinance.com)
- Byron York: Bain will be back in Romney-Obama fight (appeal-democrat.com)
- Romney: No Bailing Out European Economy – Billy House – NationalJournal.com (mbcalyn.com)
- The Bain muddle (politico.com)
- Do the Bain Hustle (truthdig.com)
- Politics – Major Garrett – Can Romney Play Defense Against Bain Attacks? – The Atlantic (mbcalyn.com)
- Private Equity Can Do Good, Says Clinton on Romney’s Bain Career (dailyfinance.com)
- President Obama Directly Seeks to Make Romney’s Business Experience the ‘Bain’ of His Existence – ABC News (mbcalyn.com)
- Why Can’t We Question Bain and Capitalism? (talkingunion.wordpress.com)