In China’s Sichuan province, Leshan city has plans to sell the operating rights to the Big Buddha, a 71-metre tall Tang dynasty stone statue, in one of a series of creative methods cash-strapped local governments are using raise money. Having spent more than £42bn last year on Covid-prevention measures, and hit by falling tax revenues, by December 2022 local governments had accumulated 35tn yuan (£4.2tn) in debt, up from 30.5tn yuan the previous year. That means that China’s provincial debt burden is roughly 20% bigger than Germany’s total GDP. In…
Tag: Chinese economy
China’s provinces spent almost £43bn on Covid measures in 2022
Chinese provinces spent more than £42.8bn on tackling Covid-19 in 2022, according to data released by local governments, with the figure expected to rise as the huge cost of the pandemic hits the world’s second-largest economy. Although national statistics are not yet available, at least 20 of China’s 31 provinces have published figures on how much money they spent on measures to control the pandemic. China abandoned its zero-Covid policy in December. It is now trying to revive the sagging economy, which grew by just 3% in 2022, down from…
China’s shrinking population: what it means for the rest of the world – expert panel
China has entered a period of “negative population growth”, an important moment in the history of the country. As recently as 2019, the UN projected the population would peak in 2031-32, but despite major government efforts to reverse the trend, China has now begun what is expected to be a long period of population decline. The ongoing shift in demographics could have a profound effect on everything from how the economy operates to Xi Jinping’s legitimacy. The Guardian spoke to experts about the implications for everything from climate change to…
China’s future to AI and jobs: five big questions from Davos
A number of big themes emerged from the World Economic Forum in the Swiss resort Davos. Here are five of most pressing questions that came to dominate this year’s gathering of the global elite. Will China be forced to make friends with the west? Donald Trump’s trade war with China – continued by his successor Joe Biden – has left relations between east and west at rock bottom. But with Covid and trade tensions halving Chinese growth last year to just 3% and western businesses such as Apple moving business…
China’s economy slows sharply with GDP growth among worst on record
China’s GDP expanded at its slowest pace since the mid-1970s bar the Covid-hit 2020 year, as the world’s second-largest economy struggled under tight pandemic restrictions that were abruptly ditched late in 2022. The economy grew 3% last year, well shy of the 5.5% pace the government had targeted at the start of the year and the 8.1% recorded for 2021. The actual rate though, was better than the 2.7% predicted by the World Bank earlier this month. Analysts will focus on the December quarter growth tally of 2.9%, which exceeded…
China to take ‘golden shares’ in tech firms Alibaba and Tencent
China is to take “golden shares” in two of its biggest tech companies, Alibaba and Tencent, as Beijing extends its influence on the country’s star tech firms and its most powerful and wealthy business people. Beijing’s move marks a shift away from imposing hefty fines and sanctions in its two-year tech crackdown, which was launched after Alibaba founder, Jack Ma, criticised regulators, The crackdown has proved tumultuous for Chinese tech firms, with billions wiped off their value, and moves including blocking the flotation of Ma’s financial services firm, Ant Group,…
Global economic forecast for 2023? A stormy start followed by a ray of hope
Investors should brace for another turbulent year in the financial markets, economists have warned as central banks fight inflation, China reopens its economy after Covid-19 restrictions and the Ukraine war pushes the global economy towards recession. The first half of the new year is likely to be choppy, according to Wall Street predictions, after global markets suffered their biggest fall since the 2008 financial crisis last year. But the US S&P 500 is still expected to end 2023 a little higher than it began the year. The average target of…
China’s move to ease Covid travel restrictions lifts hopes for global economy
China’s decision to ease rules on travel in and out of the country, the world’s second-largest economy, has offered investors hope that it could soften the toll from higher interest rates on global stock markets and unblock supply chains amid a dark outlook for 2023. Chinese authorities said late on Monday that inbound travellers would not have to quarantine on arrival, from 8 January onward. The announcement marked the latest in a series of steps to reopen the country, which is home to vital global supply chains and 1.4 billion…
Covid’s still a big issue for China – and that’s trouble for global economy
For much of the world there has been hope for some time that the worst economic shocks from the Covid pandemic are in the rearview mirror. In China, however, there are important reminders that risks to the world economy still remain. Three years since the virus first spread, protests in several Chinese cities against the Beijing government’s strict zero-Covid policies have reignited concerns in financial markets over the economic costs of the pandemic. Global oil prices have fallen back, while the Chinese yuan and stock markets across Asia have taken…
Oil, yuan and stocks slide as China protests send ‘waves of unease across financial markets’ – business live
From 2h ago Introduction: Oil and stocks hit by China protests A currency trader at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea. Photograph: Ahn Young-joon/AP Good morning and welcome to our rolling coverage of business, the financial markets and the world economy. Global stock markets are on edge as the protests intensify at major Chinese cities against the country’s stringent zero-Covid rules. Stocks have fallen across Asia-Pacific markets, while oil has dropped to a near 11-month low, as public demonstrations in cities…