Last week, the UN’s global population project announced a major shift in the way the world looks. Next year, India, not China, will be the world’s most populous country. Right now, China has 1.43 billion people to India’s 1.41 billion, but by mid-century there will be more than 1.6 billion Indians to around 1.3 billion Chinese. At one level, this development ought to delight Beijing, which compelled its population into a “one child” policy for some 40 years. Yet there may be a few disconsolate faces in Beijing. The idea…
Tag: Chinese economy
China funnels its overseas aid money into political leaders’ home provinces
China’s financing of overseas projects has disproportionately benefited the core political supporters of incumbent presidents or prime ministers of those countries that receive the funds, according to a new book. During the 20th century, China was mostly known as a recipient of international development finance. Its overseas development programme was modest – roughly on a par with that of Denmark. But over the course of one generation, as Beijing emerged as the world’s second-largest economy, its footprint began to extend far beyond its borders – often in the form of…
‘Do whatever it takes’: Beijing urged to act as China’s economy falters
At a recent online gathering of top Chinese economists, a palpable sense of urgency filled the virtual meeting room. In recent weeks, a slew of reports by Chinese and foreign economists pointed to a deteriorating economy. Outside the country, talk of China being the engine of global economic growth no longer convinces. During the meeting Huang Yiping, a Peking University professor and a former central bank adviser, urged Beijing to “do whatever it takes to save the economy”. Huang was paraphrasing a line from the height of the European debt…
Europe’s growth forecast cut as Ukraine war drives up inflation; diesel price hits record – as it happened
Closing summary Time for a recap Concerns over the global economic recovery have continued to mount, after China’s economic activity plummeted, and eurozone growth forecasts were cut. China’s retail sales tumbled by over 11% in April, while industrial production contracted by 2.9% — both the worst readings since the early months of the pandemic in 2020. Unemployment rose, while property sales saw their biggest slump since August 2006. Analysts warned that China’s economy could shrink this quarter, as Covid-19 lockdowns continued to hit consumer spending and factory output. The EC…
Fast, precise, too tough? Lockdowns risk stalling China’s economy
Veteran lorry driver Meng Hong has become an unlikely social media star in recent weeks. Since March, his short video talks about life on the road during Covid outbreaks on Douyin, the Chinese version of TikTok, have won him millions of likes. Most of Meng’s videos had been about “spreading positive energy” as he wrote in his account description. But on 13 April, he began to complain about what happened when drivers transported goods to Shanghai. “After we have delivered food, we were quarantined [after we left] or locked down…
Shanghai’s ‘grim’ Covid outbreak threatens more global supply chain disruption
The Covid-19 outbreak in Shanghai remains “extremely grim” with the ongoing lockdown of China’s financial powerhouse threatening to devastate the country’s economy and “tear apart” already very stretched global supply chains. As Shanghai announced another daily record high of 16,766 cases on Wednesday, the director of the city’s working group on epidemic control was quoted by state media as saying that the outbreak in the city was “still running at a high level”. “The situation is extremely grim,” Gu Honghui said. Although low by international standards, this is China’s worst…
Ukraine war to slow growth and drive up poverty in Asia, World Bank warns
Russia’s invasion of Ukraine has further dampened the economic prospects for developing countries in east Asia and the Pacific, meaning lower economic growth and higher poverty in the region this year, the World Bank has warned. The Ukraine factor came on top of the existing risks that the region – home to 2.1 billion people and stretching from China to Papua New Guinea – has been facing in recent years. They included the ongoing Covid-19 pandemic, the financial tightening in the US, and the pandemic resurgence amid China’s zero-Covid policies.…
China property shares soar on Beijing stimulus, despite continued debt crisis
Chinese property shares have soared for a second day thanks to a decision by Beijing’s leadership to throw the country’s struggling real estate sector a lifeline amid growing pressures at home and abroad. Despite a downgrade for China’s third-biggest property developer Sunac on Thursday, stocks in the sector lifted again in Hong Kong and the mainland thanks to an announcement by vice premier Liu He, China’s economic tsar, on Wednesday that the government needed to reduce risks in the industry. In a sign of the heightened concern inside China’s Communist…
‘No light at the end of the tunnel’: Americans join Hong Kong’s business exodus
In July 2018, Tara Joseph, president of the American Chamber of Commerce in Hong Kong, wrote an article in the best-known local English-language newspaper, the South China Morning Post, stressing to Americans the territory’s unique position as an Asian business hub. “The US is forgetting the differences between Hong Kong and China. Let’s remind them,” she wrote. “Hong Kong continues to have a robust and hearty infrastructure of values, practices and institutions that could not contrast more starkly with those of the mainland system.” Now, packing up and leaving the…
IMF warns China over cost of Covid lockdowns
China, the world’s second largest economy, should review its zero-tolerance approach to the pandemic or risk damaging the global recovery, according to the head of International Monetary Fund. Kristalina Georgieva said Beijing should reassess the use of lockdowns to limit the spread of the highly contagious Omicron variant since it became clear the harm to human health was less severe than the Delta variant. Speaking at the World Economic Forum on a virtual panel, she said that while the hardline approach had contained the pandemic in China for “quite some…