BLACK CHINA BLOG >> China Economy


China’s efforts at controlling its spiralling debt problem are being undermined by its own provinces. As provinces issue more and more bonds, the market for the financial instrument is now awash with offers, forcing rates higher, according to a Reuters report today. Heavily indebted local governments seeking to refinance expensive debt have issued more than 600 billion […]

By: Paul Adkins | Read More

Total energy consumption in China grew by just 2% YoY in May, coming in at 458 billion KWH.  Total production was flat YoY.  According to the latest data, industrial energy consumption dropped by 1%. Energy consumption has previously been touted as a good quasi indicator of economic growth, with China’s Premier Li Keqiang saying it was one […]

By: Paul Adkins | Read More

China’s Premier has said that China’s economy faces significant downward pressure, according to a Reuters story today. The world’s second-largest economy needed a new driving force to maintain steady growth, Li added. As this cartoon tries to describe, the problem is that the Chinese government seems to have given up on balanced growth as a […]

By: Paul Adkins | Read More

Regular readers will know that I sometimes quote Anne Stevenson Yang’s opinions about China.  Anne, who I knew from Beijing days, is an American who has lived decades in China, is fluent in Chinese and travels around the country extensively.   So her thoughts and views are often grounded in a deep understanding of how the […]

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China’s latest PMI data came out today, and the results show little response to the recent infrastructure stimulus package announcements. According to the HSBC data, China’s PMI came in at 49.2.   This is a tiny improvement on April’s 48.9, but still well into contraction territory. Meanwhile the official PMI published by China’s Bureau of […]

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China recently announced a raft of projects and plans that virtually replicated the 2009 stimulus package, except that this time around, some of the projects are in surrounding countries, or are dressed up to look like visionary objectives.   Spending money on facilities for the Winter Olympics in Beijing seems a little pre-emptive, since the […]

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