China’s “Two Sessions” (the annual meetings of the National People’s Congress and the Chinese People’s Political Consultative Conference) closed on Monday in Beijing. The Two Sessions featured two important announcements regarding China’s economy: a 5 percent GDP growth goal for 2024, and a deficit rate of 3 percent with the issuing of 1 trillion yuan … Read more
It’s clear that China’s efforts to build confidence in its slowing economy will top the agenda of its ceremonial legislature, the National People’s Congress (NPC), which convenes Tuesday in Beijing. What remains unclear is how the ruling Communist Party can navigate toward stronger, sustained growth as China’s workforce is aging, relations with Washington are fraught, … Read more
China’s latest official figures on the economy confirm two simultaneous truths. First, deflation, lower demand for durable goods, and lower imports persist, even if there has been some consumption rebound. New fiscal stimulus and a strong push for local government bonds to rescue the real estate sector have not had an impact on new borrowing … Read more
Advertisement In July 2023, data showed exports from China falling by an unprecedented 14.5 percent year-on-year, while imports fell 12.4 percent, the worst performance since February 2020. That bad news was followed by a worse-than-expected performance for Chinese industrial production, which increased only 3.7 percent in July over the prior year, as well as by … Read more
Advertisement The Fangbiaogan Real Estate Agency in the southern city of Nanning is still waiting for China’s post-COVID rebound. Home sales are 30-40 percent below last year’s depressed level after the economy barely grew in the latest quarter, according to the owner, who would give only his surname, Cai. He has cut staff by 80 … Read more
Advertisement During the 2008 Global Financial Crisis, China’s then-Premier Wen Jiabao declared: “In the face of economic difficulties, confidence is more important than gold and currency.” Consequently, a Chinese economic stimulus worth 4 trillion Chinese yuan ($586 billion) was issued to shore up the economy during that year. This economic measure was Beijing’s largest move … Read more