Topic

China's economic recoveryi

This topic charts China's economic recovery as it, in 2023, enters an era of slower growth, along with an ageing and shrinking workforce, weak consumer demand and a property market downturn.

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  • Investments in railway-related fixed assets increased by 23.4 per cent in the first eight months of 2023, and Beijing hopes the infrastructure boom will help stabilise economic growth
  • China is expected to add 2,500km (1,553 miles) of high-speed lines this year, which would expand its world-leading system to 44,500km
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A Post review of midyear financial reports by 18 ‘systemically important’ banks in China finds that more than two-thirds have higher outstanding non-performing property loans.

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China’s central leadership appears to be sending a strong signal that it is prioritising economic growth, amid increasing concerns over Beijing’s emphasis on external and domestic security.

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The release of pent-up demand, with travellers and consumers opening their wallets for the long holiday, could help lift China’s economy out of the doldrums.

To cope with higher demand and a reduction in government funding, public universities in China are passing on some of the costs to students – adding another burden to cash-strapped families.

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Agreeing to exchange information and work together, according to one Chinese analyst, shows how both China and the European Union recognise that ‘there needs to be a limit to de-risking’.

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In Shanghai, more young adults are showing a lack of urgency in securing work after earning a university degree, and the ‘problematic’ trend is draining parents’ resources.

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Major Chinese commercial banks have cut rates for outstanding home loans as part of a series of state-directed stimulus measures aimed at easing homebuyers’ debt burdens and reviving the country’s troubled property sector. But the cut might not provide a sufficient boost to demand, analysts said.

Airlines in China and the US are preparing for an increase in their direct routings, but the likelihood of a rapid return to 2019 levels of service is vanishingly small.

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In this issue of the Global Impact newsletter, we look at the state of play within China’s economy and at whether the wait for a recovery is finally over.

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On the third day of his China trip, Valdis Dombrovskis reiterates that the EU is not ‘decoupling’ from China but flags its ‘lack of reciprocity’ and says the bloc is looking to shore up its economic-security strategy.

China is combating a capital exodus that has depreciated the yuan and contributed to an unpredictable business environment in the country, while investors continue to call for more transparent policies.

Amid mounting talk in Europe of ‘de-risking’ from China, coupled with the unstoppable rise of Chinese electric-vehicle makers, German carmakers may be losing their say in the EU’s economic policy.

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While too early to know the impact of tariff changes introduced in August, trade lawyer warns Chinese companies to expect more trade-related costs in Mexico.

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The Chinese government has begun a campaign to prevent ‘triangular debt’ from impacting the economy at large, imploring state borrowers to make good on their obligations to private firms.

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A recent survey shows China’s newly wealthy are reducing high-cost purchases and reorienting their financial priorities amid broader economic headwinds.

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