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Is there too much "hot money" in the Chinese economy? (Image: Radio86)
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China's economy: Too hot to handle?
“The central bank said at its annual work conference that the 2010 monetary policy aimed to sustain a stable and relatively fast rate of economic growth and stabilize prices and effectively manage inflation expectations. It also vowed to add flexibility of its policy.” CRI
“Rather than cheering China’s success in shrugging off the “Great Recession” of 2009, some analysts say China’s prosperity comes at the expense of the rest of the world and claim that, anyway, it is heading for a crash.” The Economist
China's continued growth at a time when other economies seem barely able to survive is nothing less than impressive. Once again, though, there are rumblings that the Chinese economy is headed for collapse. Is the bubble finally going to burst?
The Chinese government has acknowledged the concerns voiced by experts about excessive liquidity which have raised fears of a bubble in the real estate sector, a report by CRI shows. The administration seems determined to address issues in the property market, both People's Daily and China.org.cn report.
According to Hong Kong-based China Briefing, the continued growth of Chinese exports is a result of manipulation, a charge that is rebutted by The Economist. The numbers, the magazine said, are all showing that China is on the way up. China, it insists, is not on the verge of a financial crisis.
Fears of a China meltdown are understandable. In 2009, for instance, China finally surpassed Germany as the world's largest exporter, as Deutsche Welle notes. If China's economy does prove to be a house of cards, will it lead to a global economic collapse?
| China | Europe | North-America | From elsewhere |
|---|---|---|---|
| China Embarks on Journey to Manage Liquidity CRI - 14th January 2010 China has moved and is expected to take more steps to rein in excessive money supply, which resulted in rising concerns of inflation and a bubble in the property market, experts say. China's move to raise bank reserve ratio draws global response Xinhua - 13th January 2010 The decision of the People's Bank of China (PBOC), the central bank, to increase the deposit reserve requirement ratio has drawn worldwide attention and fluctuations in global markets. Chinese ministers look to cool hot real estate sector People's Daily Online - 14th January 2010 The country's six department leaders gathered Wednesday to explain the government's new policies to cool the real estate market, build more affordable and low-rent housing, tighten credit, and ensure the supply of land. Property market leaves 'want-to-be' homeowners out in the cold China.org.cn - 14th January 2010 For real estate agents like Zhang Dongmei, 2009 was a fantastic year, and for good reason. The 30-year-old from Northeast China saw her income from 2009's red-hot property market quadruple over the previous year. China’s Exports More to do with Manipulation than Recovery China Briefing - 13th January 2010 The news that China’s exports increased by 17.7 percent in December year-on year is impressive. So too, the statistic that China has now overtaken Germany as the world’s largest exporter. |
Bears in a China shop The Economist - 14th January 2010 The “peaceful rise” hits some turbulence; but China’s economy is not about to crash China heightens bubble fears as it tightens monetary policy Telegraph - 12th January 2010 Fears that China could fall victim to a speculative bubble resurfaced on Tuesday as country's authorities ordered its banks to set aside more reserves in a precursor to a full-blown interest rate increase. China slowdown seen as threat to stability Financial Times - 14th January 2010 A hard economic landing for China, fiscal crises in developed countries and broad asset-price collapses are the biggest risks to global stability this year and beyond, according to the World Economic Forum, which meets in Davos this month. China ousts Germany as the world's top exporter Deutsche Welle - 7th January 2010 Germany has lost its crown as the world's 'export champion' after China reported slightly higher figures for 2009. Chine: la Banque centrale tente d'enrayer la surchauffe de l'économie France24 (afp) - 12th January 2010 La Banque centrale de Chine a annoncé mardi deux mesures pour tenter d'enrayer la surchauffe de l'économie, le relèvement du taux de réserves obligatoires pour les grandes banques et la hausse du taux d'intérêt sur les bons du Trésor à un an. Exportations: l'Allemagne dépassée par la Chine L'Expansion - 8th January 2010 Sur les onze premiers mois de 2009, les ventes chinoises à l'étranger se sont élevées à 1070 milliards de dollars contre 1050 milliards pour l'Allemagne. Comment la Chine tente de juguler la surchauffe de son économie L'Expansion - 12th January 2010 Envolée des crédits, formation d'une bulle financière, pressions inflationnistes : les craintes de surchauffe de l'économie poussent les autorités chinoises à resserrer leur politique monétaire. Chine : les nouveaux prêts en hausse de 95% en 2009 LesEchos.fr - 15th January 2010 Le volume du crédit en Chine s'est accru de 9.590 milliards de yuans (966 mds euros) supplémentaires en 2009, les banques octroyant un flot de nouveaux prêts pour soutenir les investissements et la relance de l'économie, selon les statistiques vendredi de la Banque centrale. «La Chine n’est pas encore le sauveur du Monde» Le Journal des Finances - 14th January 2010 La Chine table sur une croissance de 9,5% en 2010. Certains y voient un risque de «surchauffe économique», d’autres un signe d’une montée en puissance continue de l’Empire du Milieu. Pour Arne Toelsner, directeur de RCM Asie chez Allianz Global Investors, la tendance haussière devrait se prolonger en 2010 pour les actions chinoises. La Chine devient le premier exportateur mondial Le Monde - 15th January 2010 En publiant ses données économiques pour le mois de décembre, dimanche 10 janvier, la Chine est devenue le premier exportateur mondial, ravissant cette place largement symbolique à l'Allemagne. |
WEF Flags Risks of Fiscal Crisis, Bubbles and Chinese Economy The Wall Street Journal - 14th January 2010 The risks of a sovereign-debt crisis, asset-price-bubble collapse and a hard landing for the Chinese economy will be high on the agenda of global leaders convening in Davos, Switzerland, for the World Economic Forum this month. As China Rises, Fears Grow on Whether Boom Can Endure The New York Times - 11th January 2010 As much of the world struggles to clamber out of a serious recession, a gradual flow of economic power from West to East has turned into a flood. Jim Chanos Is Wrong: There Is No China Bubble Forbes - 11th January 2010 He misunderstands basic facts about income, real estate and the currency there. Is the Chinese Economy Getting Too Hot? Smart Money - 11th January 2010 It's no surprise that China's economy has been a global MVP--one of the few large economies to grow over the last year. But is it now overheating? |
China may become second largest economy in 2010 Economic Times, India - 27th December 2009 China raised its 2008 growth estimate to 9.6% from 9% and said this year’s quarterly figures will increase, narrowing the gap with Japan, the world’s second-biggest economy. Gross domestic product was 31.405 trillion yuan ($4.6 trillion) last year, the statistics bureau said at a briefing in Beijing on Friday. That compares with a previous 30.067 trillion yuan and the World Bank’s estimate of $4.9 trillion for Japan. China crisis Business World, The Philippines - 14th December 2009 If ever there’s a poster-boy for the success that the WTO could bring to a country, it may look like China. It became a WTO member in December of 2001, amidst the settling dust of the terrorist attacks in New York and the struggle to launch the Doha Development Round |
