Tag: Economy

China’s Slide Into Deflation Raises Concerns About Economic Future

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After months of concern that the Chinese economy was teetering on the brink of potentially damaging deflation, Beijing’s National Bureau of Statistics this week made it official, reporting that overall prices had declined in July by 0.3% compared to a year earlier. As much of the world struggles with the difficult phenomenon of price inflation, the news about deflation in China comes after months of reports showing stagnating price levels there, rising unemployment and slowing domestic production. Chinese officials characterized the decline in prices as transitory and said the year-over-year…

China’s July Exports Tumble, Adding to Pressure to Shore Up Economy

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BEIJING —  China’s exports plunged by 14.5% in July compared with a year earlier, adding to pressure on the ruling Communist Party to reverse an economic slump. Imports tumbled 12.4%, customs data showed Tuesday, in a blow to global exporters that look to China as one of the biggest markets for industrial materials, food and consumer goods. Exports fell to $281.8 billion as the decline accelerated from June’s 12.4% fall. Imports sank to $201.2 billion, widening from the previous month’s 6.8% contraction. The country’s global trade surplus narrowed by 20.4%…

Biden Order Curbing Investment to China Expected Next Week, Sources Say

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President Joe Biden is expected to issue his long-awaited executive order to screen outbound investments in sensitive technologies to China early next week, according to people familiar with the matter. A White House spokesperson declined to comment. The goal of the order is to prevent U.S. capital and expertise from accelerating the development of technologies that would support China’s military modernization and threaten U.S. national security. The order is expected to target U.S. private equity, venture capital and joint venture investments in China in semiconductors, quantum computing and artificial intelligence.…

Is China Responsible for Pakistan’s Debt Problem?

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ISLAMABAD —  Pakistan and China are marking a decade of economic cooperation with much fanfare these days as the China-Pakistan Economic Corridor, popularly known as CPEC, completes 10 years. Experts say while the mega-project helped Pakistan develop much-needed infrastructure, the less-than-generous loans from Beijing coupled with Islamabad’s mismanagement has kept the project from turning Pakistan’s economy around. Estimated to be the largest partnership of Beijing’s Belt and Road Initiative (BRI), a global investment and infrastructure project, CPEC launched in 2013 with more than $45 billion in planned investments. Over time,…

Does Pakistan Have a Chinese Debt Problem?

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Pakistan and China are celebrating as the China-Pakistan Economic Corridor, the centerpiece of Beijing’s global Belt and Road initiative, completes 10 years. The investment project has grown to over $60 billion and provided Pakistan with crucial infrastructure, but it also has added to the country’s ballooning debt. VOA’s Pakistan bureau chief Sarah Zaman reports. (Produced by Malik Waqar Ahmed, Jon Spier) Voice of America

China’s July Factory Output Shrinks, Adds Pressure to End Economic Slump

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BEIJING —  Chinese factory activity contracted in July as export orders shrank, a survey showed Monday, adding to pressure on the ruling Communist Party to reverse an economic slowdown. A purchasing managers’ index issued by the national statistics agency and an industry group improved to 49.3 from June’s 49 on a 100-point scale but was below the 50-point level that shows activity contracting. “China’s manufacturing PMI remained in contraction, albeit a softer pace, as the drag from the external sector deepened,” Erin Xin of HSBC said in a report. That…

Young Chinese Opt Out of Pressures at Home to Pursue Global Nomad Lifestyle

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BANGKOK —  BANGKOK — Shortly after China opened its borders with the end of “zero-COVID,” Zhang Chuannan lost her job as an accountant at a cosmetic firm in Shanghai and decided to explore the world. “The cosmetics business was bleak,” said Zhang, 34, because everyone wore face masks during the pandemic. After being laid off, she paid $1,400 for an online Thai course, got an education visa and moved to the scenic northern Thai city of Chiang Mai. Zhang is among a growing number of young Chinese moving overseas not…

Target ‘Niche’ Chinese Travelers, Not Numbers, Tourism Experts Tell Africa

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JOHANNESBURG —  African countries are investing heavily in trying to attract tourists from the world’s biggest outbound travel market, China, as they battle to recover from losses suffered during the travel bans of the COVID-19 pandemic. “COVID wiped out large parts of tourism industries, especially in poorer parts of the world like Africa,” said Mike Fabricius, a specialist in tourism management, consulting and marketing for his Johannesburg-based company, The Journey. “Some African countries rely heavily on the foreign exchange that tourists bring in and the money they spend in domestic…

Experts: Vietnam May Benefit as US Companies De-risk Supply Chains Now in China

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WASHINGTON – Vietnam is well-positioned to draw U.S. investors seeking to de-risk supply chains now in China, but closer economic integration between Hanoi and Washington appears unlikely to lead to political realignment, according to experts. Addressing local media in Hanoi during a recent visit, U.S. Treasury Secretary Janet Yellen hailed Vietnam as “a key partner” in the effort to reduce dependence on China by expanding manufacturing in the U.S. and with trusted partners. “Vietnam welcomes the U.S. ‘friendshoring,’ which is beneficial to both countries and contributes to Vietnam’s growth,” Le…

Japan Imposes Microchip Export Ban, Angering China

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Tokyo —  Japan imposed export controls on advanced microchip technologies this week in a move widely seen as targeting China, mirroring recent restrictions imposed by the United States and the Netherlands, two other major producers of cutting-edge semiconductors. Tokyo listed 23 types of semiconductor technology that are now subject to export restrictions, beginning July 23. They include advanced microchip manufacturing equipment, such as machines that deposit films on silicon wafers, to devices that etch out the microscopic circuits of chips. The controls will affect China’s ability to make advanced chips,…