Tag: Economic Conditions and Trends

China’s GDP Grew in 2023, but Economic Strains Lurk

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Car production set records in China last year. Restaurants and hotels were increasingly full. Construction of new factories surged. Yet China’s economic strengths conceal weaknesses. Deep discounts helped drive car sales, particularly for electric cars. Diners and travelers chose cheaper dishes and less expensive hotels. Many factories ran at half capacity or less because of weak demand inside China, and are working to export more to make up for it. China’s economy grew 5.2 percent last year as it rebounded from nearly three years of stringent “zero Covid” pandemic control…

China Premier Li Qiang Says Economy Grew ‘Around 5.2 Percent’

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China’s second-highest leader said Tuesday that his country’s economy had grown “around 5.2 percent” last year, providing an unusual early glimpse of important economic data a day before its official release. Speaking at the World Economic Forum in Davos, Switzerland, Premier Li Qiang, the second-highest official in China after Xi Jinping, said that China had beat its target last year of economic growth of about 5 percent. He also insisted that China had managed to expand the economy without using risky or short-term measures, like large spending or credit programs.…

Apple Will Discount iPhones by $70 in China Starting Thursday

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Ever bought a discounted new phone from Apple? For most people, the answer is no. That’s because Apple doesn’t really do discounts. But in China, Apple is slashing the price of some of its latest iPhones by $70 amid worries that Chinese consumers have cooled on the brand. That would save a buyer about 6 to 8 percent, based on prices on Apple’s China website. It has also knocked $112 off the price of some MacBook Air laptops. The sale will start on Thursday and run through Sunday. Cutting prices…

World Bank Warns of Energy Price Surge if Mideast War Spreads

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The global economy is at risk of a “wasted” decade and the weakest stretch of growth in 30 years, the World Bank warned on Tuesday, saying a sluggish recovery from the pandemic and crippling wars in Ukraine and the Middle East are expected to weigh heavily on output. In its semiannual Global Economic Prospects report, the World Bank projected that the growth in world output will slow further in 2024, declining to 2.4 percent from 2.6 percent. Although the global economy has been surprisingly resilient, the report warned that its…

Indian Stocks Are Booming. Why Is Long-Term Investment Lagging?

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India’s economy is booming. Stock prices are through the roof, among the best performing in the world. The government’s investment in airports, bridges and roads, and clean-energy infrastructure is visible almost everywhere. India’s total output, or gross domestic product, is expected to increase 6 percent this year — faster than the United States or China. But there’s a hitch: Investment by Indian companies is not keeping pace. The money that companies put into the future of their businesses, for things like new machines and factories, is stagnant. As a fraction…

Hong Kong Stocks Plunge to Losses for 4th Straight Year

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This summer, when Hong Kong’s stock market rout seemed to have no end in sight, the city’s financial chief, Paul Chan, jumped into action, creating a task force to inject confidence into a market that was being pummeled by global investors wary of China. Hong Kong cut taxes on trading and Mr. Chan went on a roadshow to Europe and the United States, promising measures to “let investors feel optimistic about the outlook.” Investors were anything but sanguine, however, and the city’s Hang Seng Exchange is among the world’s worst-performing…

China’s Property Crisis Blew Up Investments That Couldn’t Lose

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One of China’s largest investment firms, Citic Trust, had a clear pitch to investors when it was aiming to raise $1.7 billion to fund property development in 2020: There is no safer Chinese investment than real estate. The trust, the investment arm of the state-owned financial conglomerate Citic, called housing “China’s economic ballast” and “an indispensable value investment.” The money it raised would be put toward four projects from Sunac China Holdings, a major developer. Three years later, investors who put their money in the Citic fund have recouped only…

How China Is Profiting From Trade With Russia

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On China’s snowy border with Russia, a dealership that sells trucks has seen its sales double in the past year thanks to Russian customers. China’s exports to its neighbor are so strong that Chinese construction workers built warehouses and 20-story office towers at the border this summer. The border town Heihe is a microcosm of China’s ever closer economic relationship with Russia. China is profiting from Russia’s invasion of Ukraine, which has led Russia to switch from the West to China for purchases of everything from cars to computer chips.…

The Debt Problem Is Enormous, and the System for Fixing It Is Broken

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Martin Guzman was a college freshman at La Universidad Nacional de La Plata, Argentina, in 2001 when a debt crisis prompted default, riots and a devastating depression. A dazed middle class suffered ruin, as the International Monetary Fund insisted that the government make misery-inducing budget cuts in exchange for a bailout. Watching Argentina unravel inspired Mr. Guzman to switch majors and study economics. Nearly two decades later, when the government was again bankrupt, it was Mr. Guzman as finance minister who negotiated with I.M.F. officials to restructure a $44 billion…

The Clock is Ticking on Improving China-U.S. Relations, Experts Say

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“There isn’t a clear message from the U. S., or the rest of us saying, ‘Here is an economic proposition. Here is why we think that working with us is going to be good for you in the long term. And here is what flows from that,’” she said. “Like who is a friend, right? Why are they a friend? What are the benefits of being a friend? What are the risks of not being a friend? “ The discussion also veered into larger geopolitical issues — mainly Taiwan and…