CHINA ECONOMY NEWS
Germany to bar Chinese companies' components from core parts of its 5G networks
Germany, Europe's largest economy, will ban Huawei and ZTE 5G core network components by 2026 and critical systems by 2029, according to Interior Minister Faeser's March declaration. Chancellor Scholz views China as a systemic rival, encouraging climate collaboration and reduced dependence. Agreements with Deutsche Telekom, Vodafone, Telefonica were signed. Scholz's April visit to China prompted Beijing's criticism.
Saurabh Mukherjea gives 3 themes that can create new opportunities for Indian investors
Saurabh Mukherjea of Marcellus Investment Managers emphasizes India's transformative investment themes: democratized opportunities, the $300 billion China +1 chance, and women's empowerment. India outperforms China in consistent compounder returns. Government policies attract global investments. Entrepreneurs, empowered urban women, and sectors like smartphones, APIs, and medical devices, aided by rising education levels and women-centric consumption, drive growth.
Germany stops planned sale of Volkswagen's gas turbine business to China
Germany's cabinet blocked the sale of MAN Energy Solutions' gas turbine business to a Chinese company for security reasons amid EU-China trade tensions. Concerns over national security implications led to the decision, with fears that China could use the turbines for military purposes. Both Germany and the EU aim to reduce risks from economic ties with Beijing. China opposes the politicization of business cooperation and hopes for a fair business environment.
India's economy: A-Z all you need to know before announcement of Union Budget
Union Budget will be announced by Finance Minister Nirmala Sitharaman in late July. The report covers key economic indicators, including India's GDP growth at 7.8% in Q4FY24, concerns over consumption expenditure, stable retail inflation at 4.7%, fiscal deficit reduction to 5.6% in FY24, and a narrowing trade deficit | Budget 2024
Xi says China planning 'major' reforms ahead of key political meeting
Chinese President Xi Jinping said Friday the ruling Communist Party was planning and implementing "major" reforms, ahead of a closely watched political conclave that is expected to put economic recovery high on the agenda. Xi said in a speech on Friday policymakers "are planning and implementing major measures to further deepen reform in a comprehensive manner".
Guyana diaries: Bhojpuri nights, ubiquitous Hindu temples & booming economy
Guyana exudes a strong sense of Indianness that resonates deeply with visitors from India, particularly noticeable in Georgetown, its capital and the only English-speaking country in South America. The Providence Cricket Stadium greets visitors with a prominent "Bhojpuri Nights" banner, reflecting the cultural blend. Nearby, ISKCON stands as one of Georgetown's largest temples, underscoring the presence of Indian culture. Renowned eateries like the one owned by former West Indies cricketer Ramnaresh Sarwan offer a taste of familiar cuisine.
China President Xi’s mystery plans surface with biggest shift in years
China is potentially on the brink of major monetary policy changes, responding to President Xi Jinping's call to enrich the policy toolbox. Governor Pan Gongsheng hinted at plans to trade government bonds in the secondary market and make adjustments to the interest-rate system, aiming to refine technical tools and improve transparency. These proposed changes could allow the People's Bank of China to exert greater influence over interest rates and market conditions, signaling a shift towards market-driven policies and a more efficient use of credit.
China's central bank leaves key policy rate unchanged as expected
China's central bank kept the medium-term lending facility (MLF) rate unchanged at 2.50%, aligning with market expectations. The decision reflects concerns over narrowing bank profit margins and a weakening yuan. The unchanged MLF rate, which influences loan prime rates, indicates limited room for easing monetary policy amidst internal and external economic pressures.
Germany says 'serious movement' needed from China in EV tariff row
Chancellor Olaf Scholz's government is pushing for what it calls an "amicable" solution after the European Union threatened to impose swingeing anti-subsidy tariffs to shield European automakers from competition.
Moody's raises China's growth forecast to 4.5% for 2024
Growth in the first quarter was boosted by trade and manufacturing activity, with fiscal policy supporting the latter, the ratings agency said.
China's Xi Jinping calls for efforts to promote employment
China's President Xi Jinping urged for the promotion of high-quality and sufficient employment while presiding over a Politburo study session. Xi emphasized enhancing workers' sense of fulfillment, happiness, and security, according to state media reports from Xinhua news agency on Tuesday.
'Made in China' housing crisis solution may not be enough
China grapples with a colossal housing crisis, with millions of unoccupied apartments and unfinished developments, threatening its economy. Beijing's plan involves massive state intervention, buying unsold properties and converting them into social housing. However, doubts still persist about its adequacy and efficacy, raising concerns about the broader economic impact on China
Foreign-themed mutual funds rally up to 80% in a year. Should you go international?
International funds, including top performers like Mirae Asset NYSE FANG+ETF FoF, showed strong growth. However, concerns arise with Sebi's restrictions on overseas ETF investments and varying earnings growth in indices like Hang Seng and CSI 300.
India could become 3rd largest economy by 2027-28, extreme poverty in rural areas largely conquered: Arvind Panagariya
Arvind Panagariya, Chairman of the 16th Finance Commission, predicts that India could become the world's third-largest economy by 2027-28 if it sustains its growth trajectory of the past two decades. He notes that extreme poverty, which currently affects less than 3% of the population, has significantly declined, especially in rural areas. Panagariya emphasizes the need to address under-employment in agriculture by transitioning workers to the industrial and services sectors for faster urbanization.
China set to post slowing growth on housing, consumption woes
China's economy is expected to have slowed in the first quarter due to challenges in the property sector and weak consumer activity. Despite setting a growth target of around five percent for the year, analysts view this goal as ambitious. While industrial production has increased, consumption remains sluggish. The property market continues to be a concern, with falling home prices and challenges for developers. Policymakers have introduced measures to boost infrastructure spending and consumption, but more stimulus may be needed.
China job ad sparks social media outcry over 'middle-age' unemployment
A Chinese grocery store's job ad targeting only those aged 18 to 30 sparks online debate on age discrimination and job scarcity, reflecting nationwide concerns about high youth unemployment and challenges for those over 30. With looming workforce expansion and aging demographics, discussions intensify over retirement age and fair employment policies.
China's growth bump may dent urgency for more stimulus
Industrial output rose 7% in January-February from the same period a year earlier, the National Bureau of Statistics said Monday, the fastest in two years and significantly exceeding estimates. Growth in fixed-asset investment accelerated to 4.2%, strongest since April. Retail sales increased 5.5%, roughly in line with projections.
China's economy of 'great concern' at annual political meetings: spokesman
China's annual legislative meetings, the "Two Sessions," begin with a focus on economic concerns, particularly youth employment. The Chinese People's Political Consultative Conference (CPPCC) expressed worry about challenges like a prolonged property crisis and high youth unemployment, officially around 15%. Despite facing economic headwinds, a spokesperson highlighted China's resilience and a foundation for high-quality development.
Pressure grows on China for big policy moves to fix economy
China's leaders are under significant pressure to make bold policy decisions to safeguard the economy's long-term growth potential ahead of the annual meeting of China's parliament. The country faces challenges such as slowing growth, deflation, and a property market slump. Unlike in 2015, China's policy options are limited due to a spent ammunition of devaluation, tightening capital accounts, and slashed interest rates.
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