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Is China's economy truly on the way to recovery? (Image: Radio86)
Latest world viewpoints
Back from the brink?
“I believe the current recovery has been confirmed and can be sustained,” Fan Gang on CRI
“It is too early to say that there is a sustained recovery in China. The policy stimulus allows China to continue to grow in this weak global setting. Nonetheless, there is a limit to how much and how long China's growth can diverge from global growth, given that China's real economy is relatively integrated in the world economy,” World Bank on The Australian
China has seemingly been spared the worst of the economic crisis. Countries affected by the crisis have pinned their hopes on China, hoping that its recovery will kickstart their own economies. Is China truly on its way to economic recovery?
Fan Gang, one of China's top economists and an adviser to the central bank, said that China's recovery will still be marked by periods of fluctuations. Fan's insights on China's economic recovery were reported by CRI. The latest numbers from the Purchasing Manager's Index (PMI) also show a marked improvement, according to Shanghai Daily. Figures for the last three months have all been above 50, showing an expansion in the manufacturing sector.
However, there is growing concern that China's recovery is artificial. There is a the much-publicized growth in the lending sector which, according to Vancouver Sun, has released more than 6 trillion yuan (626 billion euros). Analysts are concerned, though, that money isn't supporting tangible projects but is being used to buy stocks and other properties.
Another issue that seems to be clouding the real picture of China's economic recovery is the 4 trillion yuan (417 billion euros) stimulus plan adopted by the government last year. A 24/7 Wall Street report said that the money is undoubtedly fueling spending but asks how China will fare once government money runs out.
The question isn't about whether China is on the road to recovery; but rather, how secure is the recovery path that China is on?
| China | Europe | North-America | From elsewhere |
|---|---|---|---|
| China's Economic Recovery to Be Sustainable: Economist CRI - 1st July 2009 Fan Gang, China's renowned economist and central bank advisor, said Wednesday that China's economic recovery is poised to make a U-turn. China approves new economic zone in NE coast Xinhua - 1st July 2009 China's State Council, the Cabinet,approved plans Wednesday to develop the coastal economic belt in the northeastern Liaoning Province in effort to rejuvenate the traditional industrial base. Manufacturing maintains growth arc Shanghai Daily - 2nd July 2009 Chinese manufacturing continued its growth momentum for the fourth straight month in June, reinforcing optimism that an economic recovery may be under way, two surveys showed yesterday. China industry on more solid ground: surveys China Daily - 1st July 2009 China's manufacturing sector extended a steady if unspectacular recovery in June, surveys released on Wednesday showed, adding to evidence across Asia that the regional economy is finally pulling out of a deep dive. Trade figures continue to fall in June China.org.cn - 2nd July 2009 China's trade figures continued to fall year-on-year in June, but the rate of decline eased over the May figure, vice commerce minister Chen Jian said Thursday. |
Chinese stimulus cash is inflating new stock market bubble, officials warn The Telegraph - 30th June 2009 Half of the 5.8 trillion yuan (£522bn) of stimulus loans issued by Chinese banks have flowed into the country's stock and property markets, inflating new bubbles, according to senior Communist officials. Swallowing China's economic medicine Guardian - 24th June 2009 China has raced to prop up threatened industries and preserve jobs, but will these moves drive a global recovery? Chinese manufacturing increases BBC - 1st July 2009 China's manufacturing sector grew in June at a slightly faster pace than in the previous month, a survey suggested. HK stocks drop in volatile trade; China stocks at 13-mnth high Reuters - 2nd July 2009 Chinese stocks rose 1.7 percent to a 13-month closing high in heavy trade on Thursday, with energy and metals shares strong as investors gained confidence in the recovery of the world's third-largest economy. Vous êtes ici : Actions > Actualités > Actu. marchés * Actu. Bourse * Actu. générales * Internationales * Inte Boursorama (AFP) - 6th June 2009 La Banque mondiale a relevé jeudi sa prévision de croissance 2009 pour la Chine de 6,5% à 7,2% sur un an, constatant l'impulsion donnée à l'économie par les efforts massifs d'investissements entrepris par les pouvoirs publics. Pékin fait état de signes économiques plus positifs LesEchos.fr - 17th June 2009 L'économie chinoise montre des signes plus positifs mais l'amélioration de la situation n'est pas encore solidement établie et il faut se préparer à des difficultés à plus long terme, a estimé mercredi le gouvernement chinois. |
China shares rise on economic revival hopes Forbes - 2nd July 2009 Chinese shares rose Thursday on optimism about a possible economic rebound, led by resource shares following a hike in state-set fuel prices. China not ready to lead the world into economic recovery Vancouver Sun - 29th June 2009 There has been a rude awakening for those who saw China's renewed demand for imported raw material as a harbinger of a manufacturing revival and the end of the global recession. China's premier says economy recovering "steadily" Business Week - 21st June 2009 Chinese Premier Wen Jiabao said Sunday the economy is making steady improvements but is at a critical stage, reiterating the need for continued vigilance. China’s Recovery Mirage 24/7 Wall Street - 1st July 2009 China’s Purchasing Managers’ Index was up for the fourth month in a row, moving to 53.2 from 53.1 in May. The numbers were issued by the the Federation of Logistics and Purchasing. World Bank: China GDP 'growing respectably' CNN - 18th June 2009 China can expect 7.2 percent growth in 2009, according to the World Bank, which says the country's fiscal policies in the face of a global financial slowdown have kept the Chinese economy "growing respectably." |
China's growth in doubt with lenders on a bender The Australian - 29th June 2009 The strength of China's economy is seen by the the Reserve Bank and international institutions as the biggest source of hope for the Australian economy, but its growth may be less secure than they think. Chinese economy recovering: World Bank The Bull, Australia - 19th June 2009 The World Bank has raised its forecast for Chinese economic growth in 2009 from 6.5 per cent to 7.2 per cent. |
