China

When the global economy is again drifting towards a recessionary phase, it is fast losing its confidence in one of its engines of recovery of yesteryears, i.e., China which itself is passing through a slack season. According to the International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva, global economic growth is projected to dip below 3% in 2023 and to remain at around 3% for the next five years. That is the global lender's lowest medium-term growth forecast since 1990, and well below the average growth of 3.8% seen in the past two decades. But this time, quite unlike in past, there are only few growth engines which could help economic recovery or stop further slide, and China is the least probable one because its own economy is not showing good omens. It was con...

China may have achieved an unprecedented growth in the agricultural output but has failed to satisfy farmers. A large number of farmers are unwilling to do farming for a living, posing a threat to the food security of the world’s most populous nation. However, there are several factors that have influenced farmers in China. Here are a few reasons: China has experienced rapid urbanization over the past few decades. Many rural areas have undergone significant transformation as people migrated to cities in search of better economic opportunities. This has resulted in a decrease in the agricultural workforce and a shift in aspirations away from traditional farming. The rapid economic growth in China has created a wide range of job opportunities in non- agricultural sectors, such as manu...

Dongguan city in Guangdong province, once hailed as China's industrial powerhouse, is now presenting a bleak picture, with the closure of Dongguan Gogo Garment - the city's largest lingerie manufacturer - on January 10. This is a clear indication of China's dwindling economic state. Despite being a trusted partner for renowned global high-end lingerie brands and weathering tough market competition for 43 years, Gogo Garment's downfall was inevitable due to dwindling customer orders and failed attempts to break into the domestic market. This, however, is not an isolated case in Dongguan, as Koppo Electronics, a Fortune 500 company employing over 6,000 workers, also had to shut down in July 2022 due to unpaid cross-border e-commerce payments, backlog of finished goods, and a sharp decline i...

Stress tests against US and European risk give Beijing's largest banks encouragement. Please make use of the sharing options available through the share icon located at the top or side of stories. Copying stories to distribute to others is against FT.com's terms of service and copyright policy. To purchase more rights, send an email to licensing@ft.com. Using the present article service, subscribers may distribute up to 10 or 20 articles each month. You can learn more at https://www.ft.com/tour.https://www.ft.com/content/f212c50a-9146-4fe8-ace6-47c5efcb2d3f Following the failure of Silicon Valley Bank and Credit Suisse, China's largest institutions claim to have avoided the financial crisis in the US and Europe unharmed. China's major lenders, including Industrial and Commercial ...

Three officials from the People's Bank of China (PBOC) wrote in China Finance, a journal associated with the central bank, that China should speed up the passage of the Financial Stability Law and better other legislative frameworks intended to avoid and address financial risks. According to the piece, financial officials should increase their oversight of financial institutions' data precision in order to reduce risks. It also stated whether any lessons should be learned from the Silican Valley Bank disaster. According to the writers, who work for the Deposit Insurance Corp. and the Financial Stability Bureau of the PBOC, China should also enable the insurance deposit system to perform to its maximum potential, enabling the mechanism to deal with troublesome banks in a prompt and o...

The day Chinese new Premier Li Qiang told CEOs of multinational companies at a conference in Beijing that “no matter what happens,” China will maintain steady economic growth, a South China Morning Post report on March 27, said Alibaba founder Jack Ma has returned to China after ending more than a year-long stay outside the country. The Hong Kong-based English newspaper did not say when Jack Ma returned to China, but citing sources, said the 58-year-old business tycoon visited a school he set up in Hangzhou, the home of his technology firm Ant Group. In the business circle, this is seen as a major development as Jack Ma returned to China when Li Qiang, the country’s number two leader after President Xi Jinping, is trying to put life in the declining economy by promising to safeguard...

In an address delivered on Sunday in China, the president of the International Monetary Fund urged increased attention to the world financial system and noted the emergence of "green shoots" in the second-largest economy in the world. IMF Managing Director Kristalina Georgieva stated during comments at the China Development Forum in Beijing that "risks to financial stability have increased." Georgieva praised the speed with which policymakers had responded to the financial crisis, pointing to recent cooperation between significant central banks to increase the movement of US money internationally. She claimed that these measures had somewhat reduced the tension on the market. However, there is a lot of ambiguity, which emphasizes the need for caution. Following the abrupt fail...

According to S&P Global Ratings experts, local governments' direct debt will surpass 120% of revenues in 2022, which is higher than the formal debt ceiling Beijing has set. An entire part of the yearly government work report, which was published this month, was devoted to avoiding and neutralizing significant threats in real estate and municipal government debt. Several municipal governments are experimenting with other revenue-generating strategies, but at the expense of equitable market access for bike-sharing companies. Two studies issued by China's National Development and Reform Commission, which is in charge of overseeing economic planning, indicate as much. Under a central government that has made it plain that reducing financial dangers is its top goal, China's debt-r...

A politicized financial system may become more unstable as centralized control grows. Please make use of the sharing options available through the share icon located at the top or side of stories. Copying stories to distribute to others is against FT.com's terms of service and copyright policy. To purchase more rights, send an email to licensing@ft.com. Using the present article service, subscribers may distribute up to 10 or 20 articles each month. You can learn more at https://www.ft.com/tour.https://www.ft.com/content/e7964639-67c0-472c-8f50-fb1e82f1ecd0 The demise of Silicon Valley Bank, Credit Suisse, and other lesser banks in the US and Europe brutally demonstrated the costs of regulation failure and financial volatility. Lessons from these events should not only be applied lo...