China’s economy is undergoing turbulence, but its economic outlook remains relatively positive, says this economics professor.
of communist party rule, was made in response to concerns that China could miss its own 5 per cent annual growth target.
In an attempt to stem the downward spiral that in August saw house prices fall by their fastest rate in nine years, the central bank has reduced theGOOD NEWS BOOSTS INVESTMENT SENTIMENTand the price of commodities as investors expect a boost in demand for goods and services. And, following the slew of new measures, this is exactly what we have seen.
But it could be a while before China’s property market starts to overheat. House prices in China are falling fast and there’s lots of spare inventory. Goldman Sachs estimated in April that the government may need to spend more than 15 trillion yuan to fix the problems plaguing the sector - far more than the recent stimulus blitz can provide on its own.
China’s economic miracle has traditionally relied on the expansion of exports, which reached their peak at 36 per cent of gross domestic product in 2006. This ratio has come down considerably since then, falling to 19.7 per cent in 2023, but it still remains high relative to comparable economies. In 2022, the export-to-GDP ratio in the United States, for example, was 11.6 per cent.
These infrastructure projects are connecting China with resource-rich central Asian countries through roads, railways, gas pipelines and electricity networks. China signed a lucrative gas supply contract with Kazakhstan in 2023. And China now accounts for the majority of Mongolia’s mineral exports, which increased by approximately 3 per cent between 2023 and 2024.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Commentary: Employers and employees are talking past each other in the return-to-office debateBoth sides of the in-office vs remote work debate claim to have better productivity, but the truth is far more nuanced, says INSEAD’s Mark Mortensen.
Read more »
Commentary: 28 years as mum’s caregiver, now dad needs care tooThe care of dementia-stricken family members is a growing burden that we should prepare ourselves for, says father-of-three Imran Johri.
Read more »
Commentary: New slate of leaders will grapple with contentious issues at Laos ASEAN summitAs the global environment becomes more contested and the scope for international consensus narrows, ASEAN’s convening power is perhaps more important than ever, says a Lowy Institute director.
Read more »
Commentary: Quiboloy’s arrest - when self-proclaimed ‘Son of God’ plays politicsThe arrest of Filipino religious leader Apollo Quiboloy comes amid the ongoing clash between the Marcos and Duterte dynasties, and exposes the dangers of an unholy alliance between religion and politics, says this Ateneo de Manila University lecturer.
Read more »
Commentary: A stimulus is good, but China still faces a hard slogBeijing is back in investors’ good books. To justify the euphoria, it needs some meaty goals, says Bloomberg Opinion’s Daniel Moss.
Read more »
Commentary: Singapore sends strong signal of zero tolerance with Iswaran's 12-month jail termFormer minister S Iswaran has been sentenced to 12 months’ jail in a landmark case. No public servant can stay ignorant of the expectation not to accept valuable gifts from people with whom they have official dealings, says SMU associate professor of law Eugene K B Tan.
Read more »