Tag archive: China

China’s Economic Growth Beats Expectations

China’s economy has grown faster than expected in the second quarter, thanks to robust exports and strong domestic consumption.

The country’s gross domestic product maintained its 6.9 per cent annual growth rate from the first quarter, according to the data from the National Bureau of Statistics released Monday. It outpaced analysts’ forecast of 6.8 per cent, and helped the country on its track to 6.5 per cent growth target in 2017.

Solid production output and exports along with increasing retail sales helped drive the growth, according to a Reuters calculation.

“Overall, the economy continued to show steady progress in the first half … but international instability and uncertainties are still relatively large, and the domestic long-term buildup of structural imbalances remain,” the Bureau said in a statement.

News: Chinese Investment in Australia Reaches $15.4b, Highest Since GFC

Chinese investment in Australia has reached a record high since the Global Financial Crisis to $15.4 billion, a report found.

A record 103 deals were signed with Chinese companies in 2016, according to the report “Demystifying Chinese Investment in Australia” from the University of Sydney and KPMG.

Commercial real estate accounted for 36 per cent of Chinese direct investment, followed by infrastructure with 28 per cent and a record amount of $4.34 billion thanks to the purchase of stakes in Asciano and the Port of Melbourne. In agribusiness, there were 12 deals with a record of $1.2 billion invested, threefold of the 2015 amount.

Despite the high record, report co-author Professor Hans Hendrischke from the University of Sydney Business School said investment from China is slowing down.

“Australia has proven itself to be a preferred destination for Chinese capital, but we must be cognisant that the growth in investment is slowing compared to other parts of the world such as the United States and the EU,” Hendrischke told ABC.

The report found that Australia is the second biggest destination of new Chinese investment with a total of $US90 billion ($120 billion) since 2007, losing only to the US with over $US100 billion.

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Global Economics/News: China’s Slowdown Is Biggest Economic Threat

China’s slowdown is the biggest threat facing global economy, former chief economist at the International Monetary Fund (IMF) told BBC.

Current Professor of Economics at Harvard University and former IMF economist Ken Rogoff said the economy could be “slowing down much more than the official figures show.”

“Everyone says China’s different, the state owns everything they can control it,” Rogoff said. “Only to a point. It’s definitely a worry, a hard landing in China.

“If you want to look at a part of the world that has a debt problem, look at China. They’ve seen credit fuelled growth and these things don’t go on forever.”

A Reuters poll shows that China’s economic growth next year is expected to slow down to 6.5 per cent, compared to this year’s 6.6 per cent.

The decline in global demand has resulted in the country’s exports falling 10 per cent year-on-year in September. Analysts also expect the increasing national debt levels to trigger a new financial crisis.

Furthermore, private investment has continued to drop. “The slowdown in private sector investment over the past years means that the organic growth momentum of the economy may have declined, requiring policymakers to be more vigilant in terms of keeping policies as supportive as possible,” said economists at HSBC in a statement.

The Chinese government has allocated more spending to provide fiscal stimulus, cutting lending rates six times since November 2014 and lowering banks’ cash reserve requirements to 17 per cent. However, analysts believe the government’s effort to increase liquidity in the market will not help much, as investors are more likely to save than make new investments.