China

GDP grows 5.2% in second quarter as world’s second largest economy ‘front-loads’ shipments before tariffs kick in China’s economy grew more strongly than expected in the second quarter as it proved resilient in the face of Donald Trump’s trade war. China’s gross domestic product (GDP) grew 5.2% in April to June compared with a year earlier, slowing from 5.4% in the first quarter, but just ahead of analysts’ expectations for a rise of 5.1%. The world’s second largest economy has so far avoided a sharp slowdown in part due to support by Beijing and as factories took advantage of a US-China trade truce to make shipments before tariffs kicked in, or “front-loading”. However, investors are bracing for a weaker second half as exports lose momentum, prices continue to fall, and c...

China’s Yuan is plunging to record low and the timing couldn’t be worse. China’s import costs are exploding out of roof and this has shaken the global trade. Chinese manufacturing sector/firms are slowing down and prices of daily essentials are soaring. Beijing is scrambling to contain the fallout and experts have hinted out at a crisis in motion. Chinese government had injected multiple stimulus shots in recent times to stabilize its economy, but to no avail. China’s weak currency would ripple through supply chains across countries and affect everyone’s pocket. All this might trigger a chain reaction that will pull the entire global economy into recession. China had a narrative of economic revival and comeback in 2024. After surviving hard Covid times, battling property crisis and...

The world’s energy demands in 2050 could be met by an interconnected global solar-wind energy system producing three times the amount of power needed at a lower cost than independent regional systems, according to a Chinese-led study.The researchers studied how to create a network drawing on regions with abundant renewable energy potential to provide energy across and between continents to areas with high needs. While an international renewable energy market could be created by optimising solar and wind renewable energy deployment, the team said setting up such a system must navigate geopolitical boundaries and crises such as the Ukraine war. They said successful global interconnection could improve energy efficiency, ease the economic burden of decarbonisation and be resilient ...

China’s ULB debt crisis reveals what Indian cities must avoid while building infrastructure and chasing growth. This is the 172nd in the China Chronicles seriesA key element of China’s spectacular economic growth was the immense infrastructural push country’s local governments—comprising provincial governments and urban local bodies (ULBs). This was enabled by fiscal policy support from the Chinese government and an investment environment that allowed local governments (LGs) to use debt instruments to finance infrastructure and propel local economic growth. However, the debt-driven strategy led to asymmetry: economically weaker LGs, in regions with lower Gross Domestic Product (GDP) growth, often borrowed more heavily than those in relatively prosperous economies. Nonetheless,...

China and Russia positioning themselves as voices of reason, calling for de-escalation of a conflict the United States is contemplating on entering — these are the optics Xi Jinping and Vladimir Putin sought to project during a phone call on Thursday. As US President Donald Trump weighs joining Israel in attacking Iran, the fast-spiralling conflict between two sworn enemies in the Middle East has presented Beijing and Moscow another opportunity to cast themselves as an alternative to US power. In their call, Putin and Xi strongly condemned Israel’s actions, calling them a breach of the UN Charter and other norms of international law, according to the Kremlin. (The elephant in the room, of course, is Russia’s own violations of international law in its ongoing war against Ukraine ...

Hunan has become the first province in China to use the proceeds of special-purpose bonds to guarantee government payments to enterprises, with 20 billion yuan (US$2.78 billion) allocated for this year. The inland province made the adjustment to its annual fiscal budget last month, marking the first time the bonds – typically earmarked for revenue-generating construction projects – will be used to cover government arrears. Proceeds will be distributed based on eligible outstanding debts from existing investment projects, according to a statement from the province’s department of finance issued last week. The department said the disbursements will be prioritised to help cities and counties across Hunan complete ongoing construction, clear their obligations and reduce fiscal risk....