Category Archives: Chinese economy

Confusion surrounds China’s energy policies as GDP and climate goals clash

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Wave of permits for coal-fired power plants sparks concern as ambitions for GDP growth and lowering emissions come into conflict

China’s energy policies are fast creating a type of “emissions ambiguity”, as the twin goals of boosting GDP growth and reducing carbon emissions come into conflict.

The uncertainty is whether and when the world’s biggest carbon emitter will start to curb greenhouse gas pollution. The release of the country’s annual statistics communique on Tuesday did not clear things up.

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China’s provinces spent almost £43bn on Covid measures in 2022

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Third of provinces yet to publish data as country looks to revive economy after zero-Covid policy ends

Chinese provinces spent more than £42.8bn on tackling Covid-19 in 2022, according to data released by local governments, with the figure expected to rise as the huge cost of the pandemic hits the world’s second-largest economy.

Although national statistics are not yet available, at least 20 of China’s 31 provinces have published figures on how much money they spent on measures to control the pandemic.

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China’s shrinking population: what it means for the rest of the world – expert panel

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From climate change to women’s rights, what effect will the demographic time bomb at the heart of China’s economy have?

China has entered a period of “negative population growth”, an important moment in the history of the country. As recently as 2019, the UN projected the population would peak in 2031-32, but despite major government efforts to reverse the trend, China has now begun what is expected to be a long period of population decline.

The ongoing shift in demographics could have a profound effect on everything from how the economy operates to Xi Jinping’s legitimacy. The Guardian spoke to experts about the implications for everything from climate change to the Chinese Communist party.

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China’s economy slows sharply with GDP growth among worst on record

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The economy grew 3% in 2022, exceeding some forecasts, but still well below China’s official target for the year

China’s GDP expanded at its slowest pace since the mid-1970s bar the Covid-hit 2020 year, as the world’s second-largest economy struggled under tight pandemic restrictions that were abruptly ditched late in 2022.

The economy grew 3% last year, well shy of the 5.5% pace the government had targeted at the start of the year and the 8.1% recorded for 2021. The actual rate though, was better than the 2.7% predicted by the World Bank earlier this month.

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China to take ‘golden shares’ in tech firms Alibaba and Tencent

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Move marks shift in focus by Beijing as it tries to extend influence and keep sector in check

China is to take “golden shares” in two of its biggest tech companies, Alibaba and Tencent, as Beijing extends its influence on the country’s star tech firms and its most powerful and wealthy business people.

Beijing’s move marks a shift away from imposing hefty fines and sanctions in its two-year tech crackdown, which was launched after Alibaba founder, Jack Ma, criticised regulators,

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China’s move to ease Covid travel restrictions lifts hopes for global economy

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Analysts says lifting of many rules may soften impact of higher interest rates and unblock supply chains in 2023

China’s decision to ease rules on travel in and out of the country, the world’s second-largest economy, has offered investors hope that it could soften the toll from higher interest rates on global stock markets and unblock supply chains amid a dark outlook for 2023.

Chinese authorities said late on Monday that inbound travellers would not have to quarantine on arrival, from 8 January onward. The announcement marked the latest in a series of steps to reopen the country, which is home to vital global supply chains and 1.4 billion people.

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Covid’s still a big issue for China – and that’s trouble for global economy

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The economic outlook for China is not good however its leaders respond to anti-lockdown protests

For much of the world there has been hope for some time that the worst economic shocks from the Covid pandemic are in the rearview mirror. In China, however, there are important reminders that risks to the world economy still remain.

Three years since the virus first spread, protests in several Chinese cities against the Beijing government’s strict zero-Covid policies have reignited concerns in financial markets over the economic costs of the pandemic. Global oil prices have fallen back, while the Chinese yuan and stock markets across Asia have taken a hammering.

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China braces for wave of workers fleeing iPhone factory in Covid-hit Zhengzhou

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Cities near Foxconn plant draw up plans to isolate migrant workers who are returning to home towns

Cities in central China have hastily drawn up plans to isolate migrant workers fleeing to their home towns from the country’s largest iPhone factory, amid fears they will spread coronavirus after leaving the plant in Covid-hit Zhengzhou.

Videos shared on Chinese social media showed people who are allegedly workers at the Foxconn plant climbing over fences and carrying their belongings along a road. It was previously reported that a number of workers had been placed under quarantine because of an outbreak of the disease.

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Hong Kong launches $3.8bn fund to attract foreign businesses back

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Chief executive says territory will ‘trawl world for talent’ after lockdowns and political unrest cause brain drain

Hong Kong has unveiled a HK$30bn ($3.8bn) co-investment fund to attract overseas businesses back to the city after an exodus of talent prompted by strict lockdowns and a tumultuous political climate.

A raft of measures to address the brain drain were announced by Hong Kong’s chief executive, John Lee, in his first policy address on Wednesday – although his plans have largely failed to reassure investors.

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China growth lags Asia-Pacific for first time in decades as World Bank cuts outlook

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East Asia and Pacific annual growth forecasts downgraded from 5% to 3.2% as China’s economy cools, largely due to zero-Covid policy

Covid-zero policies and the housing market crisis have put China’s economic growth behind the rest of the Asia-Pacific region for the first time in more than 30 years, according to World Bank forecasts.

In a biannual report released on Tuesday, the US-based institution said the annual growth outlook for East Asia and the Pacific region had been downgraded from 5% to 3.2%. However much of that decline was down to economic woes in China, which constitute’s 86% of the region’s economic output.

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A Ponzi scheme by any other name: the bursting of China property bubble

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Only state intervention can save the day, but the pain is likely to fall on ordinary citizens, say observers

A little more than a year ago, a Chinese property developer largely unknown to the outside world said its cashflow was under “tremendous pressure” and it might not be able to pay back some of its eye-watering debts of $300bn (£275bn).

Today, that company, China Evergrande Group, is all too well known as the poster child of the country’s economic woes. House prices in China have fallen in each of the 12 months since Evergrande’s now prophetic warning, with Xi Jinping’s government now preparing to throw billions of dollars at a property market that experts say increasingly resembles a giant Ponzi scheme.

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China tells banks to check exposure to debt-laden Fosun conglomerate

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Sprawling group owns assets including Thomas Cook, Club Med and Wolverhampton Wanderers

China’s biggest banks and state-owned companies have been told to check their financial exposure to Fosun, the sprawling conglomerate that owns assets including the Premier League football club Wolverhampton Wanderers, as the heavily debt-laden group struggles from the impact of downturn in the property sector in its home market.

The financial strength of the Shanghai-based group, co-founded in 1992 by the billionaire Guo Guangchang and built into one of China’s largest non-state-owned conglomerates, has come under scrutiny after a huge sell-off in property bonds that began in June.

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Evergrande lenders appoint receiver to seize Hong Kong HQ – sources

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Crisis at debt-laden Chinese property developer deepens in wake of default last year and failure to sell building

Lenders to the struggling Chinese developer Evergrande Group have appointed a receiver to seize its Hong Kong headquarters, two sources have said, as the world’s most indebted developer struggles to emerge from its debt crisis.

Evergrande is saddled with more than $300bn (£260bn) in liabilities and has been kept alive by a government-run rescue operation since it defaulted on $22.7bn of overseas debts in December last year.

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Point of no return: crunch time as China tries to fend off property crash

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With the global economy also at a crossroads, Beijing’s leadership faces a perilous test of nerve on its lending crackdown and zero-Covid strategy

China has reached a point of no return in its battle to contain what could be the biggest property crash the world has ever seen, experts believe, creating a perilous moment for the country’s Communist leadership and the global economy.

As western countries stand on the edge of a potentially ruinous recession in the coming year, China is also facing a slump thanks to “total collapse” of confidence among ordinary people in the once-buoyant housing market, the continued ravages of Beijing’s draconian zero-Covid strategy and an extreme heatwave that is affecting the supply of power and food.

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Oil prices hit lowest level since Ukraine invasion on China growth fears

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Chinese recovery from lockdowns shows signs of fizzling out as central bank cuts interest rates

Global oil prices have dropped amid concerns over weaker growth in the Chinese economy caused by repeated Covid lockdowns and a downturn in the property sector.

A barrel of Brent crude fell by about 5% to below $94 (£78) on Monday, hitting the joint lowest levels since the Russian invasion of Ukraine as traders reacted to weaker figures from the world’s second-largest economy.

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China’s economy slows unexpectedly as Covid outbreaks and property crisis bite

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Retail sales and industrial output lower than forecast, with fears that China could miss its annual growth target for first time since 2015

China’s economy unexpectedly slowed in July, with factory and retail activity squeezed by Beijing’s zero-Covid policy and a property crisis, while the central bank surprised markets by cutting key lending rates to revive demand.

July’s industrial output grew 3.8% from a year earlier, slightly down from 3.9% in June, data from the National Bureau of Statistics (NBS) showed. That compared with a 4.6% increase expected by analysts in a Reuters poll.

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China’s factory activity shrinks amid Covid disruption

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Sharpest contraction is in energy-intensive industries, such as petrol, coking coal and ferrous metals

China’s factory activity unexpectedly shrank in July as sporadic Covid outbreaks disrupted the sector and the slowing global economy weighed on demand.

The official manufacturing purchasing managers’ index (PMI) fell to 49.0 in July from 50.2 in June, China’s National Bureau of Statistics said on Sunday. That was weaker than forecast, below the 50-point mark separating expansion from contraction.

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Mortgage strikes threaten China’s economic and political stability

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Analysis: worsening meltdown in the country’s debt-laden property market is at the heart of a problem that comes at a precarious time for the Communist party

The alarm bells are ringing louder. Last week, hundreds of depositors gathered in front of the Zhengzhou branch of the People’s Bank of China in the provincial capital of Henan, demanding their frozen life savings held in rural banks. A day later, tens of thousands of homeowners threatened to stop paying mortgages on scores of unfinished housing projects they had purchased. All of this happened in a week where the officials reported lacklustre second-quarter economic performance.

China’s economy is facing a dangerous cocktail of stalling growth, high unemployment, spreading mortgage payment strikes and continued Covid shutdowns that threaten to explode with serious social and political consequences.

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Burberry sales fall 35% in China on back of Covid lockdowns

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Lola handbag range and signature trenchcoat give luxury fashion retailer boost elsewhere

Burberry has reported sales growth of only 1% in its latest financial quarter because of the impact of Covid-19 lockdowns in China, while sales were boosted elsewhere by its Lola handbag range and signature trenchcoat.

The luxury fashion retailer said sales fell 35% in mainland China because of restrictions and store closures to contain the latest outbreak of the coronavirus, while sales grew 16% across the rest of the world in the 13 weeks to 2 July.

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China’s economic growth slumps sharply after Covid lockdowns

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Shutdown of cities takes its toll, while property market remains in crisis and global outlook darkens

China’s economic growth has slowed sharply in the second quarter of the year, official data showed on Friday, highlighting the colossal toll from widespread Covid lockdowns and casting doubt over whether its pre-ordained growth target can be met.

Output contracted by 2.6% between April and June compared with the previous quarter, the statistics bureau said, prompting many economists to revise their predictions for the world’s second biggest economy.

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