China

As China’s economic growth slows, many are noting similarities between China and Japan before and after the collapse of the latter’s bubble economy. Will China really follow in Japan’s footsteps? Wu Junhua of the Japan Research Institute disagrees, suggesting that the biggest risk facing China’s economy is “Sovietization,” not “Japanization.” “Sovietization” Has Hindered China’s Development At a time of growing concerns about China’s economic prospects, voices are escalating about the possible “Japanization” of China’s economy. Although many of the problems facing China today, such as an aging population, deteriorating housing market, and accumulated debt, are quite like those faced by Japan before and after the collapse of the bubble economy, the two countries have very different p...

China’s National Bureau of Statistics (NBS) has released the economic data for July 2024, providing a detailed view of the country’s industrial, retail, and investment performance. The figures reveal a mixed economic landscape, with retail sales exceeding expectations, yet industrial production falling short of forecasts. The continued expansion of consumer spending indicates growing domestic demand, despite persistent challenges in the real estate sector and fixed asset investments. As the Chinese government focuses on boosting domestic demand, the challenge of maintaining economic momentum amidst structural adjustments and external uncertainties remains a significant concern moving forward. Industrial growth slows but maintains a steady pace In July, China’s industrial sector e...

Overview There was nothing in China’s latest data release to fundamentally change our views around its economy – authorities continue to prioritise the supply side of the economy, which, in the face of subdued domestic demand, is expanding export volumes and leading to growing trade tensions with other major economies. Our forecasts are unchanged – we see growth at 4.7% this year (below the full year target) and easing further to 4.6% in 2025 and 4.4% in 2026. Growth in industrial production has trended lower in recent months, down to 5.1% yoy in July (compared with 5.3% yoy in June and 6.7% yoy in April). While conditions in construction related sectors remains weak, output in the electronics sector remains comparatively strong. There was a noticeable slowing in real investment...