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China Economy

All articles tagged with #china economy

Treasury Secretary Bessent Taps Controversial Judy Shelton as Currency Policy Adviser

Treasury Secretary Scott Bessent has appointed Judy Shelton, whose 2019 Federal Reserve nomination was blocked by the Senate, as a counselor focused on currency policy and Chinese financial conditions. The move highlights ongoing staffing instability at the Treasury, where seven confirmed officials have departed since August, and follows the recent hiring of David Zervos. Shelton’s appointment bypasses Senate confirmation, allowing Bessent to add an adviser with controversial views on central banking and the gold standard without legislative approval.

via CNBC|

#china-economy #judy-shelton #monetary-policy

economy13 days ago•1 min saved

China Manufacturing PMI Rebounds to 50.1 Amid New Stimulus Measures

China’s official manufacturing purchasing managers’ index rose to 50.1 in September, ending a two-month contraction. This return to expansion was driven by activity in high-tech and equipment sectors, alongside a non-manufacturing PMI climb to 50.2. Concurrently, Beijing announced targeted fiscal and monetary measures, including mortgage subsidies and expanded lending quotas, to support growth. Economists describe these moves as a 'mini stimulus' sufficient to meet the annual growth target but insufficient to address deeper structural issues like weak domestic consumption and rising energy costs.

via CNBC|

#china-economy #economy #fiscal-stimulus

economy28 days ago•98 min saved

Fed Hike Looms as Oil Spikes and AI Warnings Rattle Markets

U.S. stock futures fell and Treasury yields surged past 5% as investors braced for a Federal Reserve rate hike, driven by sticky inflation and oil prices above $105 due to Middle East tensions. A former Google DeepMind researcher warned of AI dangers, while Chinese industrial output beat expectations on strong export demand.

via Investing.com|

#ai-safety #china-economy #economy

business1 month ago•2 min saved

China's August inflation nudges higher on energy costs, but demand stays tepid

China’s August inflation rebounded as producer prices rose 3.8% year-on-year (vs a 3.6% forecast) and consumer prices gained 0.8% y/y, driven by energy costs, base effects, and solid high-tech demand, but underlying domestic demand remains soft with services muted and consumer goods prices slipping. Core CPI rose 1.0%, while electronics prices climbed on memory-chip shortages. Analysts say the pickup reflects weak demand and overcapacity rather than a durable upturn, and PPI could ease toward deflation next year if energy flows normalize. Weak July retail sales and urban investment, plus youth urban unemployment at 17.9%, keep Beijing under pressure and some forecasters trimming 2026 growth.

via CNBC|

#business #china-economy #cpi

business1 month ago•2 min saved

Evergrande founder handed life sentence for vast fraud case

Hui Ka Yan, founder of Evergrande, was sentenced to life in prison after pleading guilty to eight charges including misuse of funds and fundraising fraud; Evergrande Group and its property arm were fined billions of yuan as part of a government crackdown on debt-fueled real estate, with more than 50 related defendants also jailed and the company saddled with massive liabilities from a $300 billion debt crisis.

via The Guardian|

#business #china-economy #evergrande

economy2 months ago•3 min saved

China factory profits cool in June as rebound loses steam

China’s industrial profits rose 15.1% year-on-year in June, the slowest pace this year, signaling an uneven rebound: profits are led by electronics and raw materials and helped by export strength, while domestic demand remains weak and some sectors like vehicle manufacturing face profit declines amid rising costs.

via Financial Times|

#china-economy #economy #electronics

world2 months ago•19 min saved

China's Q2 growth slows to 3½-year low as imbalances deepen

China’s economy grew 4.3% year-on-year in Q2, slowing from Q1’s 5.0% and undershooting its 4.5–5.0% annual target, as weak consumption and investment offset a still-strong manufacturing/export engine; June retail sales rose 1.0% and industrial output +5.3%, while fixed-asset investment fell 5.7% and housing demand remained soft, underscoring an unbalanced growth model and prompting debate over policy steps to boost domestic demand.

via Yahoo Finance|

#china-economy #domestic-demand #exports

economy3 months ago•4 min saved

China’s growth slows to multi-decade lows as domestic demand falters

China’s Q2 GDP rose 4.3% year-on-year, the slowest since the early 1990s GDP data began (apart from Covid distortions) and below Beijing’s 4.5–5% 2026 target. Domestic demand shows weakness: retail sales +1% in June, fixed-asset investment down 5.7% in the first half, while industrial production rose 5.3% in June. Exports jumped 27% YoY in June, but net exports remain negative due to higher imports, underscoring reliance on trade amid a property slowdown and deflation risks. Analysts warn that monthly indicators point to a bleaker picture than the quarterly GDP, with data gaps and foreign demand cited as partial explanations.

via Financial Times|

#china-economy #china-growth #domestic-consumption

business3 months ago•3 min saved

China's May: retail slump dims consumption as investment contracts

China's May data show weakening consumption and investment: retail sales fell 0.6% year-on-year—the first drop since December 2022—while urban fixed-asset investment declined 4.1% and manufacturing investment contracted for the first time since 2020; industrial production rose 4.5%, and unemployment eased to 5.1%, underscoring a K-shaped economy that may prompt targeted policy stimulus to boost demand.

via CNBC|

#business #china-economy #fixed-asset-investment

world5 months ago•6 min saved

Voters' anger narrows Trump's leverage in Xi talks

Trump enters high-stakes talks with Xi facing limited leverage due to U.S. voters’ sour sentiment, stubborn inflation, and a stalled housing market, while Xi can pursue a longer-term strategy and demand concessions later; Beijing’s position is strengthened by time and control, making outcomes depend more on political calculations than pure economic strength.

via CNN|

#china-economy #foreign-policy #politics

business5 months ago•5 min saved

Iran War Unmasks Slowing Growth in China's Economy

Rising oil and gas prices tied to the Iran conflict are weighing on China’s manufacturing-driven growth, with car sales plunging and consumer spending cooling, while toy factories face closures as plastics costs surge; though strategic oil reserves cushion some sectors and windfalls lift short-term profits, the economy shows cracks that could threaten the 4.5% growth target.

via The New York Times|

#business #car-sales #china-economy

business5 months ago•2 min saved

China holds key lending rates steady amid cautious growth outlook

The People’s Bank of China kept the one-year LPR at 3.0% and the five-year LPR at 3.5%, marking an 11th consecutive month with no change as policymakers weigh external risks from Middle East tensions and higher energy prices against resilient domestic growth and easing deflation. With Q1 growth around 5% and inflation firming, authorities signal a wait‑and‑see approach, aiming to support growth while maintaining currency stability and a moderately loose policy stance.

via CNBC|

#business #china-economy #inflation

economy6 months ago•2 min saved

China delivers 5% Q1 growth on export strength, despite tepid domestic demand

China’s economy grew 5% in the first quarter, beating economists’ expectations as robust exports offset weak domestic demand. Industrial output rose 5.7% and retail sales gained 1.7% in March, while fixed-asset investment climbed 1.7% and property investment fell 11.2%. Unemployment stood at 5.4%. Beijing kept a 4.5–5% annual target, but the outlook faces pressure from higher energy costs linked to the Iran conflict and a softer global demand environment.

via CNBC|

#china-economy #economy #exports

business7 months ago•5 min saved

China shifts to spending-led growth as economy cools

China is pushing a shift from investment- and export-led growth to boosting household spending, unveiling a 4.5–5% growth target and a suite of “investing in people” measures—expanded elder care, paid leave, child support, and an urban-rural income plan—to lift consumption. Analysts caution the shift will be gradual, given weak consumer confidence, a long downturn in real estate that erodes household wealth, birth-rate declines, and high youth unemployment, with stimulus effects shown to be limited so far. The plan’s success hinges on restoring incomes and confidence rather than a short-term fiscal push, while China continues to emphasize advanced manufacturing and tech as anchors for future growth.

via BBC|

#business #china-economy #consumption

business7 months ago•4 min saved

Lunar New Year lifts China's inflation to a 3-year high as factory deflation persists

China's February consumer prices rose 1.3% year-on-year—the highest in 37 months—driven by Lunar New Year holiday demand for services, travel, and items like flights and jewelry, while producer prices fell 0.9% y/y, the mildest since mid-2024, signaling ongoing weak demand. Analysts caution that an energy shock from Middle East tensions could push inflation higher briefly, but a supply-demand rebound and policy easing may temper the impulse as authorities seek to rebalance the economy.

via Reuters|

#business #china-economy #consumer-price-index