China's economy is increasingly becoming a tale of two contrasting realities. While provinces driven by artificial intelligence, semiconductors, advanced manufacturing, and exports are experiencing rapid economic growth, regions dependent on tourism, real estate, and traditional industries are struggling to keep pace.

The latest provincial economic data highlights a widening K-shaped economic divide, with technology hubs such as Zhejiang, home to Alibaba, DeepSeek, and Unitree Robotics, outperforming the national average. Other manufacturing powerhouses including Shanghai, Anhui, and Shandong have also recorded strong growth, fueled by rising global demand for high-tech products.

China's K-Shaped Economy Deepens as AI Boom Widens Regional Gap

<div class="x_elementToProof" data-olk-copy-source="MessageBody">China&rsquo;s services sector experienced its slowest growth in seven months this April, as escalating US tariffs dampened business sentiment and hiring plans. According to Reuters, the Caixin/S&amp;P Global Services Purchasing Managers&rsquo; Index (PMI) fell to 50.7 from March&rsquo;s 51.9, marking the lowest reading since September. A PMI above 50 indicates expansion, while below 50 signifies contraction.</div>
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<div class="x_elementToProof">This deceleration aligns with the official survey, which reported a slight dip in services activity to 50.1 from 50.3 the previous month. The Caixin PMI is often viewed as a more accurate reflection of trends among export-oriented and smaller firms.</div>
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<div class="x_elementToProof">Despite stronger-than-expected economic growth in the first quarter, bolstered by government stimulus, China&rsquo;s economy faces persistent deflationary risks, a prolonged property slump, and mounting challenges from US tariffs. In 2023, approximately 48 per cent of China&rsquo;s workforce was employed in the services industry, which contributed 56.7 per cent to the nation&rsquo;s GDP. However, the ongoing trade tensions have begun to weigh on business hiring plans and consumer confidence.</div>
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<div class="x_elementToProof">&ldquo;With a cloud over the market outlook, both business and consumer confidence are subdued, making it harder to boost domestic demand,&rdquo; said Wang Zhe, Senior Economist at Caixin Insight Group, as reported by Reuters. &ldquo;The ripple effects of the ongoing China-US tariff standoff will gradually be felt in the second and third quarters. As such, policymakers should prepare well and take action sooner rather than later,&rdquo; he added.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The Caixin services survey indicated that new business growth slowed to its weakest since December 2022, though export orders saw a slight uptick, partly due to a recovery in tourism. Some service providers cited disruptions from US tariffs impacting goods trade.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Business sentiment in the services sector grew at the slowest pace since February 2020, with companies identifying US tariffs as a significant concern. To curb costs, service providers reduced jobs for the second consecutive month, leading to a rise in backlogged work and pushing the corresponding gauge into expansionary territory for the first time this year. Firms also cut prices to attract customers, despite facing higher input costs.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The Caixin China General Composite PMI, which combines both manufacturing and services activity, fell to 51.1 in April from 51.8 the previous month.</div>
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<div class="x_elementToProof">In response to these challenges, China&rsquo;s ruling Communist Party&rsquo;s Politburo pledged last month to support firms and workers most affected by the impact of triple-digit US tariffs and urged the country to prepare for worst-case scenarios. Economists at Morgan Stanley projected that second-quarter growth could slow by one percentage point as tariffs take effect. They anticipate that Beijing will navigate these challenges with cautious and uneven stimulus policies, relying on investment in emerging sectors and urban renewal, while gradually shifting policy towards consumption over the medium term.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The ongoing trade tensions have also impacted other sectors. For instance, Hong Kong&rsquo;s freight forwarding industry is experiencing significant disruptions, with 41 per cent of container capacity to North America&rsquo;s west coast canceled for the week starting May 12, according to the South China Morning Post, as reported by Reuters. This highlights the broader economic implications of the US-China trade war, signaling further turbulence ahead for both regional logistics and global trade infrastructure.</div>
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<div class="x_elementToProof"><b>The US-China trade talks</b></div>
<div class="x_elementToProof"><b>&nbsp;</b></div>
<div class="x_elementToProof">In April 2025, President Donald Trump escalated the trade conflict with China by imposing a 145 per cent tariff on Chinese imports, citing concerns over trade imbalances and national security. In retaliation, China levied a 125 per cent tariff on US goods, triggering a sharp downturn in bilateral trade.</div>
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<div class="x_elementToProof">Despite the friction, both countries have signalled cautious interest in returning to the negotiating table. China&rsquo;s Ministry of Commerce said it is &ldquo;evaluating&rdquo; Washington&rsquo;s outreach for potential tariff talks but rejected any form of intimidation. Trump, meanwhile, reaffirmed he would not drop tariffs just to resume dialogue, demanding what he calls a &ldquo;fair and reciprocal&rdquo; trade deal.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">On May 5, 2025, China&rsquo;s Ministry of Commerce issued a firm rebuttal to US pressure tactics. Ministry spokesperson He Yongqian stated, &ldquo;Pressure, threats and blackmail are not the right way to deal with China. We hope that the two countries will meet each other halfway and work towards resolving differences through dialogue and consultation, guided by the principles of mutual respect, peaceful coexistence and win-win cooperation.&rdquo;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">He added that if the US insists on pursuing a trade war, China is prepared to &ldquo;fight to the end.&rdquo; However, the country remains open to fair negotiations conducted on equal terms. To counter the impact of tariffs, Beijing is advancing economic resilience strategies&mdash;boosting domestic demand through consumer trade-in programs, promoting premium goods events, and encouraging foreign trade firms to tap into China&rsquo;s vast local market.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">&ldquo;We can see that the potential of China&rsquo;s super-large domestic market is constantly being unleashed,&rdquo; He said. &ldquo;China&rsquo;s foreign trade sector has the confidence and capability to withstand various risk challenges.&rdquo;</div>

Business & Economy: China’s services growth slows amid US tariffs. Caixin PMI drops to 50.7. Beijing urges fair talks, warns against pressure as trade war intensifies.

China’s services sector experienced its slowest growth in seven months this April, as escalating US tariffs dampened business sentiment and hiring plans. According to Reuters, the Caixin/S&P Global Services Purchasing Managers’ Index (PMI) fell to 50.7 from March’s 51.9, marking the lowest reading since September. A PMI above 50 indicates expansion, while below 50 signifies contraction. This deceleration aligns with the official survey, which reported a slight dip in services activity to 50.1 from 50.3 the previous month. The Caixin PMI is often viewed as a more accurate reflection of trends among export-oriented and smaller firms. Despite stronger-than-expected economic growth in the first quarter, bolstered by government stimulus, China’s economy faces persistent deflationary risks, a prolonged property slump, and mounting challenges from US tariffs. In 2023, approximately 48 per cent of China’s workforce was employed in the services industry, which contributed 56.7 per cent to the nation’s GDP. However, the ongoing trade tensions have begun to weigh on business hiring plans and consumer confidence. “With a cloud over the market outlook, both business and consumer confidence are subdued, making it harder to boost domestic demand,” said Wang Zhe, Senior Economist at Caixin Insight Group, as reported by Reuters. “The ripple effects of the ongoing China-US tariff standoff will gradually be felt in the second and third quarters. As such, policymakers should prepare well and take action sooner rather than later,” he added. The Caixin services survey indicated that new business growth slowed to its weakest since December 2022, though export orders saw a slight uptick, partly due to a recovery in tourism. Some service providers cited disruptions from US tariffs impacting goods trade. Business sentiment in the services sector grew at the slowest pace since February 2020, with companies identifying US tariffs as a significant concern. To curb costs, service providers reduced jobs for the second consecutive month, leading to a rise in backlogged work and pushing the corresponding gauge into expansionary territory for the first time this year. Firms also cut prices to attract customers, despite facing higher input costs. The Caixin China General Composite PMI, which combines both manufacturing and services activity, fell to 51.1 in April from 51.8 the previous month. In response to these challenges, China’s ruling Communist Party’s Politburo pledged last month to support firms and workers most affected by the impact of triple-digit US tariffs and urged the country to prepare for worst-case scenarios. Economists at Morgan Stanley projected that second-quarter growth could slow by one percentage point as tariffs take effect. They anticipate that Beijing will navigate these challenges with cautious and uneven stimulus policies, relying on investment in emerging sectors and urban renewal, while gradually shifting policy towards consumption over the medium term. The ongoing trade tensions have also impacted other sectors. For instance, Hong Kong’s freight forwarding industry is experiencing significant disruptions, with 41 per cent of container capacity to North America’s west coast canceled for the week starting May 12, according to the South China Morning Post, as reported by Reuters. This highlights the broader economic implications of the US-China trade war, signaling further turbulence ahead for both regional logistics and global trade infrastructure. The US-China trade talks In April 2025, President Donald Trump escalated the trade conflict with China by imposing a 145 per cent tariff on Chinese imports, citing concerns over trade imbalances and national security. In retaliation, China levied a 125 per cent tariff on US goods, triggering a sharp downturn in bilateral trade. Despite the friction, both countries have signalled cautious interest in returning to the negotiating table. China’s Ministry of Commerce said it is “evaluating” Washington’s outreach for potential tariff talks but rejected any form of intimidation. Trump, meanwhile, reaffirmed he would not drop tariffs just to resume dialogue, demanding what he calls a “fair and reciprocal” trade deal. On May 5, 2025, China’s Ministry of Commerce issued a firm rebuttal to US pressure tactics. Ministry spokesperson He Yongqian stated, “Pressure, threats and blackmail are not the right way to deal with China. We hope that the two countries will meet each other halfway and work towards resolving differences through dialogue and consultation, guided by the principles of mutual respect, peaceful coexistence and win-win cooperation.” He added that if the US insists on pursuing a trade war, China is prepared to “fight to the end.” However, the country remains open to fair negotiations conducted on equal terms. To counter the impact of tariffs, Beijing is advancing economic resilience strategies—boosting domestic demand through consumer trade-in programs, promoting premium goods events, and encouraging foreign trade firms to tap into China’s vast local market. “We can see that the potential of China’s super-large domestic market is constantly being unleashed,” He said. “China’s foreign trade sector has the confidence and capability to withstand various risk challenges.”

US tariffs stall China’s services growth: PMI hits 7-month low as trade tensions escalate

<p>Nvidia has hired hundreds of Chinese nationals this year to strengthen its research capacities and concentrate on new autonomous driving technology.</p>

<p>A Bloomberg report quoting sources showed from an initial staff of around 3,000 in early 2024, the world's second most valuable firm is expected to grow to over 4,000 by the end of the year.<br />
<br />
Nvidia has strengthened its team of self-driving researchers in Beijing by adding over 200 employees as part of this development.<br />
<br />
According to a Bloomberg source, the American firm has also strengthened its teams responsible for developing networking software and after-sales support.<br />
<br />
In response to insatiable demand for its AI processors, Nvidia is increasing its workforce worldwide.<br />
<br />
Despite Nvidia being unable to sell its most sophisticated transistors in China due to US trade restrictions, the country nonetheless managed to generate 5.4 billion dollars in sales last quarter.</p>

<p>China is still a major market and research centre for the American chip designer.<br />
<br />
Despite Nvidia's efforts to keep relations with Beijing cordial, China’s antitrust agency revealed an investigation into Nvidia's acquisition of Mellanox in 2020.<br />
<br />
A deal that the authorities had previously conditionally allowed.</p>

<p>The investigation started shortly after CEO Jensen Huang praised China’s technological achievements on a trip to Hong Kong just a few weeks ago.</p>

<p><i>(With inputs from the agencies)</i></p>


Nvidia has hired hundreds of Chinese nationals this year to strengthen its research capacities and concentrate on new autonomous driving technology. A Bloomberg report quoting sources showed from an initial staff of around 3,000 in early 2024, the world's second most valuable firm is expected to grow to over 4,000 by the end of the year.

Nvidia has hired hundreds of Chinese nationals this year to strengthen its research capacities and concentrate on new autonomous driving technology. A Bloomberg report quoting sources showed from an initial staff of around 3,000 in early 2024, the world's second most valuable firm is expected to grow to over 4,000 by the end of the year. Nvidia has strengthened its team of self-driving researchers in Beijing by adding over 200 employees as part of this development. According to a Bloomberg source, the American firm has also strengthened its teams responsible for developing networking software and after-sales support. In response to insatiable demand for its AI processors, Nvidia is increasing its workforce worldwide. Despite Nvidia being unable to sell its most sophisticated transistors in China due to US trade restrictions, the country nonetheless managed to generate 5.4 billion dollars in sales last quarter. China is still a major market and research centre for the American chip designer. Despite Nvidia's efforts to keep relations with Beijing cordial, China’s antitrust agency revealed an investigation into Nvidia's acquisition of Mellanox in 2020. A deal that the authorities had previously conditionally allowed. The investigation started shortly after CEO Jensen Huang praised China’s technological achievements on a trip to Hong Kong just a few weeks ago. (With inputs from the agencies)

Nvidia expands workforce in China amid growth plans

<p class="MsoNormal"><span lang="EN-GB">China's economic outlook is facing a significant downturn, with the World Bank projecting a decrease in growth to 4.3 per cent for 2025. This marks a decline from the previously estimated 4.8 per cent, as outlined in a recent economic update released on Tuesday.</span></p>

<p class="MsoNormal"><span lang="EN-GB">While this figure represents a slight increase of 0.3 per cent compared to earlier forecasts made in April, it underlines&nbsp;the ongoing uncertainty surrounding the effectiveness of Beijing's recent stimulus measures according to a detailed report by CNBC.</span></p>

<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">Temporary boost from stimulus measures<o:p></o:p></span></b></p>

<p class="MsoNormal"><span lang="EN-GB">The World Bank’s report highlights that although there has been a temporary uplift in investor sentiment following the rollout of various economic measures by the Chinese government, this boost is not expected to translate into sustained growth.</span></p>

<p class="MsoNormal"><span lang="EN-GB">Aaditya Mattoo, the World Bank's chief economist for East Asia and the Pacific, expressed concerns during an interview with CNBC's 'Street Signs Asia'. He pointed out that the real challenge lies in whether these stimulus efforts can alleviate consumer anxieties related to stagnant wages and diminishing property revenues.</span></p>

<p class="MsoNormal"><span lang="EN-GB">Mattoo elaborated on the current consumer landscape in China, indicating that fears surrounding health, aging, and unemployment continue to dampen spending. The lack of robust consumer expenditure is a critical factor contributing to the forecasted slowdown. Furthermore, ongoing challenges such as weak property markets and an aging demographic are compounding these issues.</span></p>

<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">Stimulus focused on supply rather than demand<o:p></o:p></span></b></p>

<p class="MsoNormal"><span lang="EN-GB">James, head of Asia-Pacific research at JPMorgan, echoed Mattoo's sentiments regarding the nature of the stimulus initiatives. He noted that the focus appears to be predominantly on enhancing supply and investment rather than addressing consumer demand directly.</span></p>

<p class="MsoNormal"><span lang="EN-GB">"The million-dollar question in China right now is whether the stimulus will primarily enhance the supply side or ultimately translate into increased consumer demand," he remarked. Currently, analysts do not anticipate a significant shift towards bolstering consumer spending as a result of these measures.</span></p>

<p class="MsoNormal"><span lang="EN-GB">To foster sustainable economic growth, the World Bank has consistently advocated for more assertive policy measures from China. These include fostering competition, improving infrastructure, and reforming the education system. However, Mattoo cautioned that while recent stimulus efforts may provide short-term relief, they cannot replace essential structural reforms necessary for long-term economic stability.</span></p>

<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">Regional implications of China's slowdown<o:p></o:p></span></b></p>

<p class="MsoNormal"><span lang="EN-GB">The implications of China's economic deceleration extend beyond its borders. The World Bank forecasts that other countries in East Asia and the Pacific will experience growth of 4.7 per cent this year, with an anticipated rise to 4.9 per cent next year. This growth is expected to be driven by a recovery in exports and improved financial conditions across the region.</span></p>

<p class="MsoNormal"><span lang="EN-GB">However, as China’s economy slows down, it becomes increasingly vital for neighbouring countries to cultivate additional domestic growth drivers. The dependence and relation of these economies with each other means that any downturn in China could have ripple effects throughout East Asia and beyond.</span></p>

<p class="MsoNormal"><span lang="EN-GB">Therefore, while recent stimulus measures have provided a temporary boost to China's economy, significant challenges remain that could hinder sustainable growth moving forward. The focus must shift towards addressing consumer concerns and implementing structural reforms if China aims to maintain its role as a key driver of regional economic performance.</span></p>


China's economic outlook is facing a significant downturn, with the World Bank projecting a decrease in growth to 4.3 per cent for 2025. This marks a decline from the previously estimated 4.

China's economic outlook is facing a significant downturn, with the World Bank projecting a decrease in growth to 4.3 per cent for 2025. This marks a decline from the previously estimated 4.8 per cent, as outlined in a recent economic update released on Tuesday. While this figure represents a slight increase of 0.3 per cent compared to earlier forecasts made in April, it underlines the ongoing uncertainty surrounding the effectiveness of Beijing's recent stimulus measures according to a detailed report by CNBC. Temporary boost from stimulus measures The World Bank’s report highlights that although there has been a temporary uplift in investor sentiment following the rollout of various economic measures by the Chinese government, this boost is not expected to translate into sustained growth. Aaditya Mattoo, the World Bank's chief economist for East Asia and the Pacific, expressed concerns during an interview with CNBC's 'Street Signs Asia'. He pointed out that the real challenge lies in whether these stimulus efforts can alleviate consumer anxieties related to stagnant wages and diminishing property revenues. Mattoo elaborated on the current consumer landscape in China, indicating that fears surrounding health, aging, and unemployment continue to dampen spending. The lack of robust consumer expenditure is a critical factor contributing to the forecasted slowdown. Furthermore, ongoing challenges such as weak property markets and an aging demographic are compounding these issues. Stimulus focused on supply rather than demand James, head of Asia-Pacific research at JPMorgan, echoed Mattoo's sentiments regarding the nature of the stimulus initiatives. He noted that the focus appears to be predominantly on enhancing supply and investment rather than addressing consumer demand directly. "The million-dollar question in China right now is whether the stimulus will primarily enhance the supply side or ultimately translate into increased consumer demand," he remarked. Currently, analysts do not anticipate a significant shift towards bolstering consumer spending as a result of these measures. To foster sustainable economic growth, the World Bank has consistently advocated for more assertive policy measures from China. These include fostering competition, improving infrastructure, and reforming the education system. However, Mattoo cautioned that while recent stimulus efforts may provide short-term relief, they cannot replace essential structural reforms necessary for long-term economic stability. Regional implications of China's slowdown The implications of China's economic deceleration extend beyond its borders. The World Bank forecasts that other countries in East Asia and the Pacific will experience growth of 4.7 per cent this year, with an anticipated rise to 4.9 per cent next year. This growth is expected to be driven by a recovery in exports and improved financial conditions across the region. However, as China’s economy slows down, it becomes increasingly vital for neighbouring countries to cultivate additional domestic growth drivers. The dependence and relation of these economies with each other means that any downturn in China could have ripple effects throughout East Asia and beyond. Therefore, while recent stimulus measures have provided a temporary boost to China's economy, significant challenges remain that could hinder sustainable growth moving forward. The focus must shift towards addressing consumer concerns and implementing structural reforms if China aims to maintain its role as a key driver of regional economic performance.

China's growth to slow next year despite boost from stimulus, World Bank warns

US treasury secretary Janet Yellen said that China's economic slowdowns risks causing repo effects across the global economy including the United States. Speaking on the sidelines of a G20 event, Yellen said 'many countries depend on strong Chinese growth to promote growth in their own economies particularly in the countries in Asia and slow growth in China can have some negative spillovers for the United States.

Slowing China will impact global economy says Janet Yellen

<p>China's economy likely grew at the slowest pace in 1-1/2 years in the fourth quarter, dragged by weaker demand due to a property downturn, curbs on debt and strict COVID-19 measures, raising heat on policymakers to roll out more easing steps.</p>

<p>Data on Monday is expected to show gross domestic product (GDP) grew 3.6% in October-December from a year earlier - the weakest pace since the second quarter of 2020 and slowing from 4.9% in the third quarter, a Reuters poll showed.</p>

<p>On a quarterly basis, growth is forecast to rise to 1.1% in the fourth quarter from 0.2% in July-September.</p>

<p>For 2021, GDP likely expanded 8.0%, which would be the highest annual growth in a decade, partly due to the low base set in 2020, when the economy was jolted by COVID-19 and stringent lockdowns.</p>

<p>The government is due to release the GDP data, along with December activity data, on Monday at 0200 GMT.</p>

<p>The world's second-largest economy, which cooled over the course of last year, faces multiple headwinds in 2022, including persistent property weakness and a fresh challenge from the recent local spread of the highly-contagious Omicron variant.</p>

<p>Exports, which were one of the few areas of strength in 2021, are also expected to slow, while the government is seen continuing its clampdown on industrial emissions.</p>

<p>Policymakers have vowed to head off a sharper slowdown, ahead of a key Communist Party Congress late this year.</p>

<p>The central bank is set to unveil more easing steps, though it will likely favour injecting more cash into the economy rather than cutting interest rates too aggressively, policy insiders and economists said.&nbsp;read more</p>

<p>Analysts polled by Reuters expect the central bank to deliver more modest easing steps, including cutting banks' reserve requirement ratios the one-year loan prime rate (LPR) - the benchmark lending rate.</p>

<p>Analysts at ANZ said in a note that they saw a possibility that the central bank will cut the rate on its medium-term lending facility (MLF) on Monday.</p>

<p>Policymakers have also pledged to step up fiscal support for the economy, speeding up local government special bond issuance to spur infrastructure investment and planning more tax cuts.</p>

<p>"We might see a larger effect of the monetary and fiscal easing only in the second half of 2022 due to the transmission lags of these policies," analysts at Natixis said in a note.</p>

<p>"The recent monetary easing and the stabilization of PMI (factory activity) have indicated such a direction, but more efforts are needed to boost fixed asset investment."</p>

<p>Growth is likely to slow to 5.2% in 2022, according to the poll.</p>


China's economy likely grew at the slowest pace in 1-1/2 years in the fourth quarter, dragged by weaker demand due to a property downturn, curbs on debt and strict COVID-19 measures, raising heat on policymakers to roll out more easing steps.

China's economy likely grew at the slowest pace in 1-1/2 years in the fourth quarter, dragged by weaker demand due to a property downturn, curbs on debt and strict COVID-19 measures, raising heat on policymakers to roll out more easing steps. Data on Monday is expected to show gross domestic product (GDP) grew 3.6% in October-December from a year earlier - the weakest pace since the second quarter of 2020 and slowing from 4.9% in the third quarter, a Reuters poll showed. On a quarterly basis, growth is forecast to rise to 1.1% in the fourth quarter from 0.2% in July-September. For 2021, GDP likely expanded 8.0%, which would be the highest annual growth in a decade, partly due to the low base set in 2020, when the economy was jolted by COVID-19 and stringent lockdowns. The government is due to release the GDP data, along with December activity data, on Monday at 0200 GMT. The world's second-largest economy, which cooled over the course of last year, faces multiple headwinds in 2022, including persistent property weakness and a fresh challenge from the recent local spread of the highly-contagious Omicron variant. Exports, which were one of the few areas of strength in 2021, are also expected to slow, while the government is seen continuing its clampdown on industrial emissions. Policymakers have vowed to head off a sharper slowdown, ahead of a key Communist Party Congress late this year. The central bank is set to unveil more easing steps, though it will likely favour injecting more cash into the economy rather than cutting interest rates too aggressively, policy insiders and economists said. read more Analysts polled by Reuters expect the central bank to deliver more modest easing steps, including cutting banks' reserve requirement ratios the one-year loan prime rate (LPR) - the benchmark lending rate. Analysts at ANZ said in a note that they saw a possibility that the central bank will cut the rate on its medium-term lending facility (MLF) on Monday. Policymakers have also pledged to step up fiscal support for the economy, speeding up local government special bond issuance to spur infrastructure investment and planning more tax cuts. "We might see a larger effect of the monetary and fiscal easing only in the second half of 2022 due to the transmission lags of these policies," analysts at Natixis said in a note. "The recent monetary easing and the stabilization of PMI (factory activity) have indicated such a direction, but more efforts are needed to boost fixed asset investment." Growth is likely to slow to 5.2% in 2022, according to the poll.

China's Q4 GDP growth seen hitting one-and-a-half-year low, raising heat on policymakers

<p>The International Monetary Fund(IMF) lowered <strong>China's growth</strong> for this year citing "large-scale disorderly corporate debt defaults or restructuring".</p>

<p>The<strong> IMF</strong> added that&nbsp;"China's property sector could reverberate widely". IMF predicted China will grow at 8.0 per cent this year down by 0.1 percentage point from its July estimate.</p>

<p><a href="https://www.wionews.com/world/now-chinas-move-to-cut-silicon-production-disrupts-global-economy-417923">Also Read |&nbsp;Now, China's move to cut silicon production disrupts global economy</a></p>

<p>China has been hit by<strong> coal </strong>and power shortages including the Evergrande property crisis. <strong>&nbsp;Evergrande </strong>has been struggling to clear its massive&nbsp;$300 billion in liabilities dragging down markets.</p>

<p>"China's prospects for 2021 are marked down slightly due to stronger-than-anticipated scaling back of public investment," the IMF said.</p>

<p><a href="https://www.wionews.com/world/now-chinas-move-to-cut-silicon-production-disrupts-global-economy-417923">Also Read:&nbsp;Now, China's move to cut silicon production disrupts global economy</a></p>

<p>In April, the IMF had pegged China's growth this year at 8.4 per cent. The international fund also lowered China's growth for next year to 5.6 per cent.</p>

<p>The IMF also highlighted&nbsp;"stronger-than-anticipated" pullback in public spending in China leading to growth going on a downward spiral.</p>

<p><a href="https://www.wionews.com/world/china-rust-belt-province-warns-of-more-shortages-in-energy-crisis-419929">Also Read:&nbsp;China rust-belt province warns of more shortages in energy crisis</a>&nbsp;</p>

<p>The IMF projected the global economy would to grow at 5.9 per cent in 2021 and 4.9 per cent in 2022 which is 0.1 percentage points lower for 2021 than the July forecast.&nbsp;</p>

<p>According to IMF, India's economy is expected to grow by 9.5 per cent in 2021 and 8.5 per cent in 2022.</p>

<p>"The outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics," Gita Gopinath, chief economist of the IMF, said.</p>

<p>(With inputs from Agencies)</p>


The International Monetary Fund(IMF) lowered China's growth for this year citing "large-scale disorderly corporate debt defaults or restructuring". The IMF added that "China's property sector could reverberate widely".

The International Monetary Fund(IMF) lowered China's growth for this year citing "large-scale disorderly corporate debt defaults or restructuring". The IMF added that "China's property sector could reverberate widely". IMF predicted China will grow at 8.0 per cent this year down by 0.1 percentage point from its July estimate. Also Read | Now, China's move to cut silicon production disrupts global economy China has been hit by coal and power shortages including the Evergrande property crisis. Evergrande has been struggling to clear its massive $300 billion in liabilities dragging down markets. "China's prospects for 2021 are marked down slightly due to stronger-than-anticipated scaling back of public investment," the IMF said. Also Read: Now, China's move to cut silicon production disrupts global economy In April, the IMF had pegged China's growth this year at 8.4 per cent. The international fund also lowered China's growth for next year to 5.6 per cent. The IMF also highlighted "stronger-than-anticipated" pullback in public spending in China leading to growth going on a downward spiral. Also Read: China rust-belt province warns of more shortages in energy crisis The IMF projected the global economy would to grow at 5.9 per cent in 2021 and 4.9 per cent in 2022 which is 0.1 percentage points lower for 2021 than the July forecast. According to IMF, India's economy is expected to grow by 9.5 per cent in 2021 and 8.5 per cent in 2022. "The outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics," Gita Gopinath, chief economist of the IMF, said. (With inputs from Agencies)

IMF cuts China's growth forecast amid 'disorderly corporate debt defaults'

<p>China recorded 6.5 per cent growth <a href="http://www.wionews.com/world/china-other-countries-wont-swallow-americas-poisonous-trade-pills-chinese-media-171757">in the July-to-September period year-on-year</a>, according to China's National Bureau of Statistics(NBS). It is China's slowest growth pace in nine years in the third quarter.</p>

<p>China had grown at 6.7 per cent in the second quarter. The growth figures slipped as factory output growth weakened to 5.8 per cent.</p>

<p>Although infrastructure investment rose 3.3 per cent year-on-year for January to September period,&nbsp;however,&nbsp;it was still down 4.2 per cent in the first eight months of the year. Retail sales bounced back growing 9.2 per cent in September compared to a year earlier.</p>

<p>US has been involved in an escalating trade war with China imposing heavy tariffs on Chinese goods entering US shores, acknowing the " extremely complex economic environment", a government spokesman said China's growth remained "generally steady".</p>

<p>"Faced with an extremely complex environment abroad and the daunting task of reform and development at home China's economic growth remained generally steady," NBS spokesman Mao Shengyong said.</p>

<p>President Trump had targetted tariffs on cars, machinery, electronics, consumer appliances and others entering the US leading to several firms halting investments in China.</p>

<p>The NBS spokesman, however, asserted that China will&nbsp;be able to maintain steady growth next year while revealing the lastest growth figures.&nbsp;</p>

<p>"Infrastructure investment growth is expected to stabilise while the trend of consumption upgrade' continues," NBS asserted, adding,"external environment will create uncertainties for China's efforts to stabilise growth."</p>

<p>The Shanghai stock exchange was mixed after China revealed its grown figures. After falling in morning trade, stocks recovered.<br />
&nbsp;</p>


China recorded 6.5 per cent growth in the July-to-September period year-on-year, according to China's National Bureau of Statistics(NBS). It is China's slowest growth pace in nine years in the third quarter.

China recorded 6.5 per cent growth in the July-to-September period year-on-year, according to China's National Bureau of Statistics(NBS). It is China's slowest growth pace in nine years in the third quarter. China had grown at 6.7 per cent in the second quarter. The growth figures slipped as factory output growth weakened to 5.8 per cent. Although infrastructure investment rose 3.3 per cent year-on-year for January to September period, however, it was still down 4.2 per cent in the first eight months of the year. Retail sales bounced back growing 9.2 per cent in September compared to a year earlier. US has been involved in an escalating trade war with China imposing heavy tariffs on Chinese goods entering US shores, acknowing the " extremely complex economic environment", a government spokesman said China's growth remained "generally steady". "Faced with an extremely complex environment abroad and the daunting task of reform and development at home China's economic growth remained generally steady," NBS spokesman Mao Shengyong said. President Trump had targetted tariffs on cars, machinery, electronics, consumer appliances and others entering the US leading to several firms halting investments in China. The NBS spokesman, however, asserted that China will be able to maintain steady growth next year while revealing the lastest growth figures. "Infrastructure investment growth is expected to stabilise while the trend of consumption upgrade' continues," NBS asserted, adding,"external environment will create uncertainties for China's efforts to stabilise growth." The Shanghai stock exchange was mixed after China revealed its grown figures. After falling in morning trade, stocks recovered.

China's GDP growth slows in third quarter amid trade spat with US

<p>Manila-based <a href="http://www.wionews.com/business-economy/indias-growth-set-to-be-higher-than-china-in-2018-asian-development-bank-26598">Asian Development Bank(ADB)</a> today projected India's economic growth to pick up to 7.3 per cent this fiscal.</p>

<p>The Bank forecasted India to grow at &nbsp7.6 per cent in 2019-20.&nbsp</p>

<p>Reserve Bank of India had projected the country to grow at 7.4 per cent in 2017 fiscal. The Indian economy grew 6.6 per cent in the last fiscal.</p>

<p>ADB said the growth will pick up as the new tax regime improves productivity and as banking reform and corporate deleveraging take hold to reverse a downtrend in investment.</p>

<p>"In sum, growth is forecast to pick up to 7.3 per cent in FY2018 on improved rural consumption, a modest uptick in private investment, and less drag from net exports. Urban consumption growth will remain stable, and impetus from public investment modest," ADB said.</p>

<p>In December, the ADB had made a similar prediction asserting that South Asia will remain the fastest growing region in Asia Pacific with India projected to grow at 7.3 per cent.</p>

<p>"Also set to catalyse growth are benefits from the GST as it mitigates geographic fragmentation and adds revenue to the exchequer, as well as further progress on fiscal consolidation and reform to promote FDI," the Bank added.</p>

<p>ADB had said India's growth would be at a lower rate of 6.7 per cent in 2017 from the previous estimate of 7.0 per cent, however, as far as China was concerned the bank had said it would grow at 6.8 per cent &nbspbut in 2018 the country could see a dip with the economy growing at 6.4 per cent.<br />
&nbsp</p>


ADB said the growth will pick up as the new tax regime improves productivity and as banking reform and corporate deleveraging take hold to reverse a downtrend in investment.

Manila-based Asian Development Bank(ADB) today projected India's economic growth to pick up to 7.3 per cent this fiscal. The Bank forecasted India to grow at &nbsp7.6 per cent in 2019-20. Reserve Bank of India had projected the country to grow at 7.4 per cent in 2017 fiscal. The Indian economy grew 6.6 per cent in the last fiscal. ADB said the growth will pick up as the new tax regime improves productivity and as banking reform and corporate deleveraging take hold to reverse a downtrend in investment. "In sum, growth is forecast to pick up to 7.3 per cent in FY2018 on improved rural consumption, a modest uptick in private investment, and less drag from net exports. Urban consumption growth will remain stable, and impetus from public investment modest," ADB said. In December, the ADB had made a similar prediction asserting that South Asia will remain the fastest growing region in Asia Pacific with India projected to grow at 7.3 per cent. "Also set to catalyse growth are benefits from the GST as it mitigates geographic fragmentation and adds revenue to the exchequer, as well as further progress on fiscal consolidation and reform to promote FDI," the Bank added. ADB had said India's growth would be at a lower rate of 6.7 per cent in 2017 from the previous estimate of 7.0 per cent, however, as far as China was concerned the bank had said it would grow at 6.8 per cent &nbspbut in 2018 the country could see a dip with the economy growing at 6.4 per cent.

Indian economy to grow at 7.3 per cent this fiscal, 7.6 per cent in 2019-20: Asian Development Bank

<p>Two decades of China&#39;s economic growth has brought the good life to millions of its citizens.</p>

<p>The country&#39;s per capita income is over $15,000. Its literacy rates top 96 per cent. There has been a huge progress in health and sanitation. Any first time visitor to China cannot but be impressed by the world-class infrastructure evident in cities like Beijing and Shanghai. For that matter, even tier two cities like Dongguan in the south-east boast of well-planned roads, commercial and residential districts. &nbsp;</p>

<p>However, challenges remain for the Chinese government which is struggling to ensure job creation and keep the standards of living high.&nbsp;The gap between the rich and poor is also widening and remains a cause for concern.</p>

<p>Millions of workers in traditional industries like iron and steel and coal are being laid off. The minimum wage has been rising steadily over the last decade but substantial regional differences remain. &nbsp; &nbsp;</p>

<p>New workers are poorly paid. They are offered no security or benefits.&nbsp;<br />
&nbsp;<br />
In 2016, nearly eight million graduates entered the job market with high expectations but dim prospects of getting a well-paying job.</p>

<p>The education system does not prepare students for employment. Vocational schools don&#39;t measure up to demands of the marketplace.</p>

<p>China&#39;s economy is moving away from mass production of low-tech products like toothbrushes, cheap electronics, toys and to higher-value, higher technology products. This is where the United States and Europe currently dominate and the entry of China into this segment means more competition, better quality, even lower prices.</p>

<p>But it&#39;s not clear which country or whose people will benefit.&nbsp;<br />
&nbsp;<br />
&nbsp;</p>

<p><br />
&nbsp;</p>


Millions of workers in traditional industries like iron and steel and coal are being laid off. The minimum wage has been rising steadily over the last decade but substantial regional differences remain.

Two decades of China's economic growth has brought the good life to millions of its citizens. The country's per capita income is over $15,000. Its literacy rates top 96 per cent. There has been a huge progress in health and sanitation. Any first time visitor to China cannot but be impressed by the world-class infrastructure evident in cities like Beijing and Shanghai. For that matter, even tier two cities like Dongguan in the south-east boast of well-planned roads, commercial and residential districts. However, challenges remain for the Chinese government which is struggling to ensure job creation and keep the standards of living high. The gap between the rich and poor is also widening and remains a cause for concern. Millions of workers in traditional industries like iron and steel and coal are being laid off. The minimum wage has been rising steadily over the last decade but substantial regional differences remain. New workers are poorly paid. They are offered no security or benefits. In 2016, nearly eight million graduates entered the job market with high expectations but dim prospects of getting a well-paying job. The education system does not prepare students for employment. Vocational schools don't measure up to demands of the marketplace. China's economy is moving away from mass production of low-tech products like toothbrushes, cheap electronics, toys and to higher-value, higher technology products. This is where the United States and Europe currently dominate and the entry of China into this segment means more competition, better quality, even lower prices. But it's not clear which country or whose people will benefit.

China gets richer, but inequality grows

<p>India has emerged as the economic pole of global growth by surpassing China and is expected to maintain its lead over the coming decade, says a new study by Harvard University.</p>

<p>According to the Harvard University&#39;s Center for International Development (CID) growth projections,&nbsp;India will feature on top of the list of the fastest growing economies till 2025 with an average annual growth of 7.7 per cent, for a variety of reasons.</p>

<p>&quot;The economic pole of global growth has moved over the past few years from China to neighbouring India, where it is likely to stay over the coming decade,&quot; the CID research suggested.</p>

<p>The study attributed India&#39;s rapid growth prospects to the fact that it is particularly well positioned to continue diversifying into new areas, given the capabilities accumulated to date.</p>

<p>&quot;India has made inroads in diversifying its export base to include more complex sectors, such as chemicals, vehicles, and certain electronics,&quot; the growth projection pointed out.</p>

<p>&quot;The major oil economies are experiencing the pitfalls of their reliance on one resource. India, Indonesia and Vietnam have accumulated new capabilities that allow for more diverse and more complex production that predicts faster growth in the coming years,&quot; it added.</p>

<p>Stating that economic growth fails to follow one easy pattern, the study said, &quot;The countries that are expected to be the fastest growing - India, Turkey, Indonesia, Uganda, and Bulgaria -&nbsp;are diverse in all political, institutional, geographic and demographic dimensions.&quot;</p>

<p>&quot;What they share is a focus on expanding the capabilities of their workforce that leaves them well positioned to diversify into new products and products of increasingly greater complexity,&quot; the new growth projections by CID added.</p>

<p>Besides, the projections divide countries into three basic categories -- the ones with too few productive capabilities to easily diversify into related products, the countries that have enough capabilities that make diversification and growth easier, which include India, Indonesia and Turkey, and&nbsp;the advanced countries such as Japan, Germany and the US that already produce nearly all existing products, so that progress will require pushing the world&#39;s technological frontier by inventing new products, a process that implies slower growth.</p>

<p>Growth in emerging markets is predicted to continue to outpace that of advanced economies, though not uniformly says CID&#39;s new growth projections. The growth projections are based on measures of each country&#39;s economic complexity, which captures the diversity and sophistication of the productive capabilities embedded in its exports and the ease with which it could further diversify by expanding those capabilities.</p>

<p>The CID is a university-wide center that works to advance the understanding of development challenges and offer viable solutions to problems of global poverty.&nbsp;</p>


India will feature on top of the list of the fastest growing economies till 2025 with an average annual growth of 7.7%, the study by Harvard University states

India has emerged as the economic pole of global growth by surpassing China and is expected to maintain its lead over the coming decade, says a new study by Harvard University. According to the Harvard University's Center for International Development (CID) growth projections, India will feature on top of the list of the fastest growing economies till 2025 with an average annual growth of 7.7 per cent, for a variety of reasons. "The economic pole of global growth has moved over the past few years from China to neighbouring India, where it is likely to stay over the coming decade," the CID research suggested. The study attributed India's rapid growth prospects to the fact that it is particularly well positioned to continue diversifying into new areas, given the capabilities accumulated to date. "India has made inroads in diversifying its export base to include more complex sectors, such as chemicals, vehicles, and certain electronics," the growth projection pointed out. "The major oil economies are experiencing the pitfalls of their reliance on one resource. India, Indonesia and Vietnam have accumulated new capabilities that allow for more diverse and more complex production that predicts faster growth in the coming years," it added. Stating that economic growth fails to follow one easy pattern, the study said, "The countries that are expected to be the fastest growing - India, Turkey, Indonesia, Uganda, and Bulgaria - are diverse in all political, institutional, geographic and demographic dimensions." "What they share is a focus on expanding the capabilities of their workforce that leaves them well positioned to diversify into new products and products of increasingly greater complexity," the new growth projections by CID added. Besides, the projections divide countries into three basic categories -- the ones with too few productive capabilities to easily diversify into related products, the countries that have enough capabilities that make diversification and growth easier, which include India, Indonesia and Turkey, and the advanced countries such as Japan, Germany and the US that already produce nearly all existing products, so that progress will require pushing the world's technological frontier by inventing new products, a process that implies slower growth. Growth in emerging markets is predicted to continue to outpace that of advanced economies, though not uniformly says CID's new growth projections. The growth projections are based on measures of each country's economic complexity, which captures the diversity and sophistication of the productive capabilities embedded in its exports and the ease with which it could further diversify by expanding those capabilities. The CID is a university-wide center that works to advance the understanding of development challenges and offer viable solutions to problems of global poverty.

India surpasses China, becomes new economic growth pole: Harvard study

<p>China&#39;s economy grew 6.9 percent in the first quarter from a year earlier, slightly faster than expected, supported by a government infrastructure spending spree and a frenzied housing market that is showing signs of overheating.</p>

<p>Analysts polled by Reuters had expected the economy to expand 6.8 percent in the first quarter, the same pace as in the fourth quarter of 2016.</p>

<p>The first-quarter growth pace was the fastest since the third quarter of 2015.</p>

<p>The government is aiming for growth of around 6.5 percent in 2017, slightly lower than last year&#39;s target of 6.5-7 percent and the actual 6.7 percent, which was the weakest pace in 26 years.</p>

<p>While China&#39;s data has been largely upbeat so far this year, many analysts widely expect the world&#39;s second-largest economy to lose steam later in the year as the impact of earlier stimulus measures starts to fade and as local authorities step up their battle to rein in hot housing prices.</p>

<p>Gross domestic product (GDP) in January-March rose 1.3 percent quarter-on-quarter from the previous three months, compared with growth of 1.7 percent in October-December, the National Bureau of Statistics said on Monday.</p>

<p>Analysts had expected quarterly growth would ease marginally to 1.6 percent.&nbsp;</p>

<p>(Reuters)</p>


Analysts had expected the economy to expand 6.8 per cent

China's economy grew 6.9 percent in the first quarter from a year earlier, slightly faster than expected, supported by a government infrastructure spending spree and a frenzied housing market that is showing signs of overheating. Analysts polled by Reuters had expected the economy to expand 6.8 percent in the first quarter, the same pace as in the fourth quarter of 2016. The first-quarter growth pace was the fastest since the third quarter of 2015. The government is aiming for growth of around 6.5 percent in 2017, slightly lower than last year's target of 6.5-7 percent and the actual 6.7 percent, which was the weakest pace in 26 years. While China's data has been largely upbeat so far this year, many analysts widely expect the world's second-largest economy to lose steam later in the year as the impact of earlier stimulus measures starts to fade and as local authorities step up their battle to rein in hot housing prices. Gross domestic product (GDP) in January-March rose 1.3 percent quarter-on-quarter from the previous three months, compared with growth of 1.7 percent in October-December, the National Bureau of Statistics said on Monday. Analysts had expected quarterly growth would ease marginally to 1.6 percent. (Reuters)

China first-quarter GDP grows 6.9 per cent, better than expected

<p>China has lowered this year&#39;s GDP target to &quot;around 6.5 per cent&quot; -- its lowest in decades -- as the economy faces a clump&nbsp;of challenges, most notably the flickering light on export-led growth.</p>

<p>This year&#39;s economic growth target is lower than the previous year, when the world&#39;s second-largest economy looked to grow between 6.5 and 7 per cent.</p>

<p>The economy finally gre at 6.7 per cent, the lowest growth rate since 1990.</p>

<p>The detailed&nbsp;report will be rubber-stamped by China&#39;s&nbsp;Premier Li Keqiang beginning at 9 am (0100 GMT).</p>

<p>&quot;GDP is projected to grow by 6.5 percent approximately, however in practice, we will strive for better,&rdquo; according to a copy of Li&#39;s planned address to the National People&#39;s Congress (NPC), the Communist Party-controlled legislature.&nbsp;</p>

<p>Li&#39;s remarks said the target was still sufficient to meet the Communist Party&#39;s target of doubling the size of the economy by 2020, compared to 2010.</p>

<p>The NPC brings together thousands of politicians from across China, touted by the ruling party as proof that it answers to the people despite a monopoly on power, and is used to outline top national priorities and policies.</p>

<p>The target came in slightly below the expectations of analysts in a sign that authorities are prioritising risk control over short-term growth rates.&nbsp;&nbsp;</p>

<p>China is trying to pivot from hyper-fast growth based on investment and exports towards a steadier consumer-driven model.</p>

<p>But the transition is complicated by slowing growth, a slumping currency, massive capital flight by Chinese enterprises seeking better returns abroad, and fears of a housing bubble and bad-loan crisis.</p>

<p>The government report also set an inflation target of &quot;around 3 percent&quot; for the year.&nbsp;</p>

<p>(WION with inputs from AFP)</p>


The target, detailed in a report to be presented to the Chinese parliament later in the day, is lower than last year's range of 6.5 to 7%

China has lowered this year's GDP target to "around 6.5 per cent" -- its lowest in decades -- as the economy faces a clump of challenges, most notably the flickering light on export-led growth. This year's economic growth target is lower than the previous year, when the world's second-largest economy looked to grow between 6.5 and 7 per cent. The economy finally gre at 6.7 per cent, the lowest growth rate since 1990. The detailed report will be rubber-stamped by China's Premier Li Keqiang beginning at 9 am (0100 GMT). "GDP is projected to grow by 6.5 percent approximately, however in practice, we will strive for better,” according to a copy of Li's planned address to the National People's Congress (NPC), the Communist Party-controlled legislature. Li's remarks said the target was still sufficient to meet the Communist Party's target of doubling the size of the economy by 2020, compared to 2010. The NPC brings together thousands of politicians from across China, touted by the ruling party as proof that it answers to the people despite a monopoly on power, and is used to outline top national priorities and policies. The target came in slightly below the expectations of analysts in a sign that authorities are prioritising risk control over short-term growth rates. China is trying to pivot from hyper-fast growth based on investment and exports towards a steadier consumer-driven model. But the transition is complicated by slowing growth, a slumping currency, massive capital flight by Chinese enterprises seeking better returns abroad, and fears of a housing bubble and bad-loan crisis. The government report also set an inflation target of "around 3 percent" for the year. (WION with inputs from AFP)

China lowers growth target to 'around 6.5%'

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