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Both China and India have attracted global attention for rapid growth, but their growth patterns are very different (Rajan 2006, Pack 2008, Bosworth and Maertens 2010). China took the conventional route of manufacturing-led growth and is recognised as a global leader in manufactured exports. India followed the unconventional route of service-led growth and has acquired a global reputation for service exports.
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The cooling of China’s real estate sector is good for the economy. But the government is right to be worried about the social consequences of the bubble bursting. In October, Beijing announced that four city and provincial governments – Shanghai, Shenzhen, Zhejiang and Guangdong – would be allowed to start issuing bonds for the first time in China’s history. Zhejiang is expected to issue $8 billion yuan in bonds, including half three-year bonds and half five-year bonds. The proceeds are intended to fund infrastructure projects already under construction. But why now?
Oct. 4 (Bloomberg) -- China’s rise to global prominence has long preoccupied the leaders of the developed world. They should be more concerned about what happens if the country’s growth falters. With its combination of cheap labor, easy money, undervalued currency, heavy investment in manufacturing and focus on exports, the nation of 1.3 billion has built an impressive economic engine.
It's becoming clear that China won't bail out Europe , simply because it sees no political will and has no desire to buy more Western debt. Same will apply to US as things get worse. What China will buy is access to stuff it truly wants: resources and management talent. So, as the cited FT story makes clear, China is ready to invest in Brazil's new offshore hydrocarbon discoveries. And as the Center for America-China Partnership made clear in our grand strategy agreement , China is interested in buying into US companies. But no, it's not interested in throwing hard-earned money after bad.
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Economist talking up a new book by Arvind Subramanian, who often writes for the FT. It's called "Eclipse." Why China looms large in the future global economy, according to Subramanian: demography, convergence, and "gravity." Convergence is a take on the healing of the "great divergence" that began around 1800: West grows 1200% over two next centuries while the rest lost 50% (much due to colonialization).
China may be famous as the workshop of the world, but one Hong Kong lingerie- maker has found Thailand a more alluring destination, as companies shift production to cheaper countries. Top Form International, which supplies companies such as Walmart from its south China factories, has been forced to face a new reality in China as workers demand higher wages. Sitting in his Hong Kong office across the border from Guangdong province, Michael Austin, Top Form’s chief financial officer, says the company is seeing wage increases of 20 per cent every year. “China’s policy is double wages in five years. We expect it to be shorter than that.”
Yesterday, China’s National Bureau of Statistics issued the official economic figures for the 3rd Quarter of 2011. The headline number, year-on-year GDP growth, came in at 9.1%, down steadily from 9.5% in the 2nd Quarter and 9.7% in the 1st. That morning, I went on Bloomberg TV to offer my perspective on what these numbers may mean. You can watch my interview here .
Yesterday, China’s National Bureau of Statistics issued the official economic figures for the 3rd Quarter of 2011. The headline number, year-on-year GDP growth, came in at 9.1%, down steadily from 9.5% in the 2nd Quarter and 9.7% in the 1st. That morning, I went on Bloomberg TV to offer my perspective on what these numbers may mean. You can watch my interview here . The fact that China’s GDP growth is slowing is not, in itself, a problem — in fact, the Chinese government has been trying to engineer a slowdown for almost an entire year now, in order to bring rising inflation under control.
In-depth analysis on Credit Writedowns Pro , now with big discounts for regular readers. Contact us for info. You are here: Home » Economy » Sixty percent of China’s rich want to leave the country
With the Chinese government tightening credit, the massive leakage from the formal banking sector into the ‘shadow system’ ultimately risks sinking the country’s financial system. For quite some time, analysts of China have been puzzled by a strange phenomenon: the country’s public and financial institutions are decidedly subpar by any international standard, but its economic growth rate is anything but. This puzzle can only be explained by two conclusions: either China has been fudging its growth data, or Chinese institutions aren’t as bad as outsiders commonly think.