BLACK CHINA BLOG >> China Economy


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 […]

By: Paul Adkins | Read More

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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The Financial Times has reported that the Chinese government has ordered its banks to prop up insolvent local government projects. The directive, which came jointly from the Ministry of Finance, the People’s Bank of China and the Banking Regulator and was published by the State Council, orders banks to keep lending to local government projects, […]

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The People’s Bank of China (PBoC) yesterday announced another interest rate cut.   The central bank has shaved another 25 basis points off the 1-year lending rate, as well as reducing the maximum deposit rate by the same amount. The narrative put forward by the bank is that this move is to help shore up the […]

By: Paul Adkins | Read More
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