Saturday, 21 November 2009

Chinability adds new page of news from US Asian Wire

A new page on Chinability contains full text and images of selected stories on Sino-US relations, American Chinese and Chinese citizens in the United States provided by US Asian Wire, America's most comprehensive targeted newswire. Just click on the logo:

Wednesday, 18 November 2009

China's depreciating currency

Since the onset of the global economic crisis, the Chinese yuan (CNY) has been re-pegged to the US dollar in an attempt by the Chinese government to reverse the collapse in exports. It had previously been allowed to rise against the US dollar from July 2005 onward. As a result, the yuan has been falling along with the US dollar against other major world currencies. After peaking at around 120 at the end of 2008 and the early months of 2009 it dropped to less than 112 by October 2009.
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Thursday, 22 October 2009

GDP up 7.7% year on year in first three quarters of 2009

The National Bureau of Statistics today released its preliminary estimate for economic growth in the 1st 3 quarters of 2009.
Highlights:
* GDP totalled CNY 21,781.7 billion, up 7.7% year-on-year (1st quarter 6.1%, 2nd quarter 7.9%, 3rd quarter 8.9%).
* Sectoral growth: primary 4%, secondary 7.5%, tertiary 8.8%.
* Bumper harvest expected: early rice crop 5.3% up on 2008, meat output up 5.6%.
* Industrial value added up 8.7% year-on-year in first 3 quarters, accelerating each quarter this year.
* Foreign-invested enterprises' output up only 3.4%.
* Profits of industrial enterprises 10.6% down year-on-year in first 8 months of 2009.
* Fixed-asset investment up 33.4% in first three quarters, 6.4% higher growth than in same period of 2008.
* Infrastructure investment up 52.6%, including 72.9% growth in investment in health and social security.
* Real estate investment up 17.7% year-on-year and accelerating.
* Consumer spending up 17% in real terms, especially on furniture and cars.
* Deflation decreased to 1.1% (i.e. fall in consumer price index) in the first three quarters.
* Month-on-month price changes have become positive, i.e. mildly inflationary.
* House prices overall have remained stable.
* Two-way trade down 20.9% year-on-year in first three quarters of 2009.
* Trade surplus down by USD 45.5 billion year-on-year.
* Incomes continued rising.
* M2 was up 29.3% year-on-year at end-September.
* Outstanding loans up CNY 5.2 trillion yuan year-on-year at end-September.

Details here.

Saturday, 17 October 2009

China's outward direct investment: a recovery may be in the offing

Global FDI collapsed in 2008 and is continuing to fall in 2009, according to a recent OECD report, which showed that world FDI inflows fell by 35% year-on-year and FDI outflows fell by 19% in 2008, with early data for 2009 suggesting that global FDI outflows could this year dip below USD1 trillion for the first time since 2005.

So you may not be surprised to learn that China's outward direct investment (ODI), which has grown at an accelerating pace in this decade, has also collapsed. A report on the Chinese language version of the Invest in China website of China's Ministry of Commerce (MOFCOM) states that non-financial ODI from China in the first half of 2009 was only USD12.4 billion, a plunge of 51.7%  year-on-year.

So has the Chinese government's "go global" policy failed? Not a bit of it. China's ODI is certainly experiencing a bumpy roller-coaster ride, but the long-term trend remains sharply upward.

Friday, 16 October 2009

What Chinability blog is about

Chinability blog is a commentary on China's economy and business climate.
Its aim is to help understand what is going on in China in the light of the country's recent history.
The statistical data on which the analysis is based are being accumulated on the Chinability web site, which also has a page of constantly updated China economy and business news aggregated from thousands of sources.