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| China-Japan-Koreas |
| China announces £800bn stimulus to boost confidence |
| 2012-08-26 |
| One Chinese province after another has stepped forward over the last fortnight to announce their plans, in what appears to be a propaganda effort to reassure the public that the economy is still on track. Meanwhile, Wen Jiabao, the Chinese premier, promised over the weekend that the Chinese government would intensify its efforts to boost the economy in the second half of the year. On a visit to Guangdong, the heartland of China's export industry, Mr Wen warned that "there will still be a lot of problems and uncertainties in exports going forward. The third quarter is a crucial period". Analysts said the government could now steer the value of the yuan lower, after a gain of 4.7pc last year against the dollar. Further export tax rebates could also be used to bail out manufacturers. China's export sector is suffering from anaemic demand from Europe and the United States. In the first seven months, exports rose 7.8pc, while imports rose 6.4pc, leaving China in danger of missing its 10pc target for trade growth this year. July's exports grew at the lowest pace since 2009 and there are reports of factory workers leaving and returning to their home provinces for the first time since the financial crisis. |
| Posted by:tipper |
| #4 It still comes down to how much China's one-party state - "tolerant" or flexible as it is or claims to be - is willing to de facto decentralize + liberalize, etc. in order to improve + expand their economy. E.G. CHINESE MILITARY FORUM > CHINESE BROKEN DREAMS FOR NEW UNDERGRADUATES | [Al-Jazeera] CHINA: BROKEN DREAMS. ARTIC denotes that ... > 25.0Milyuhn young Chinese are on the constant prowl = search for jobs. Most will end up frustrated or disappointed. > Young Chinese office workers are unhappy due to personal or job insecurities. IMO, IOW they don't have trust in either their jobs or the Chinese economic boom to last long enough to make it worth their time + effort. > Many reside in so-called "Ant Tribes" whose members are educated and dedicated, while also being excessively overworked and underpaid. |
| Posted by: JosephMendiola 2012-08-26 22:17 |
| #3 The Chinese will save their money. Purchase gold and hoard it. They are trying to turn the Chinese into consumers. Not going to happen. Give the money to Europe and tie up manufacturing in a long term deal to corner the market. This will keep their factories going and people working. Problem is they are in the process of automation to reduce need of workers. Aw growing pains. Unions, benefits, higher wages, EPA and other western ailments. Paradise lost so soon. |
| Posted by: Dale 2012-08-26 20:32 |
| #2 Yeah, that whole stimulus thing worked so very well for us. If nothing else, this certainly shows how tightly tied our economies are - And will hopefully reinforce both nations' desire to avoid armed conflict. Orion |
| Posted by: Orion 2012-08-26 18:54 |
| #1 Yeah... cuz stimulus works sooooo well. |
| Posted by: DarthVader 2012-08-26 18:27 |