Chinese Economic Policy

China's private consumption expenditure has been stagnating in the range of 34-40 per cent for the last two decades

By some measures, China's economy is looking resilient, with strong exports and breakthroughs in artificial intelligence and other advanced technologies. But that's not how it feels for many ordinary Chinese, who have been enduring the strain from weak property prices and uncertainty over their jobs and incomes. While some industries are thriving thanks to government support for technologies such as AI and electric vehicles, owners of small businesses report tough times as their customers cut back on spending. Some economists believe that the world's second largest economy is growing more slowly than official figures suggest, even though China may hit its official 2025 annual growth target of about 5%. Beijing has averted a damaging full blown trade war with Washington after President Donald Trump struck a truce with Chinese leader Xi Jinping, but many longer-term challenges remain. Chinese consumers are feeling the pinch -------------------------------------------- Business is v

China's global goods surplus has surged past $1 trillion, driven by booming auto and battery exports, and a competitive edge from weak domestic demand and currency dynamics

Chinese companies are redesigning magnets, rethinking manufacturing processes and changing how products are shipped, to maintain access to Western buyers but without breaking the law

Despite record EV sales and more than $100 billion in revenue, BYD is burning billions in cash as tighter competition, slower model upgrades and rising costs squeeze its margins at home and abroad

Signals resilience as it counters US tariffs with plans to boost domestic demand through stimulus measures, including possible interest rate cuts, amid ongoing trade tensions

China's 10-year and 30-year sovereign bond yields fell over 4 basis points each to record lows of 1.7650 per cent and 1.9950 per cent, respectively

Chinese crude imports grew annually for the first time in seven months in November, up more than 14 per cent from a year earlier

Letting the yuan depreciate could make Chinese exports cheaper, thus blunting the impact of tariffs, and creating looser monetary settings in mainland China

World's second-largest economy is bracing for likely fresh tariffs from a second Donald Trump White House and still dealing with other headwinds, suggesting more policy stimulus will be needed

The Chinese government is looking at additional ways to boost the economy, Finance Minister Lan Fo'an said Saturday, but he stopped short of unveiling a major new stimulus plan that analysts and stock investors were hoping for. Lan's remarks left the door open for such a plan in the future but he did not divulge what is under consideration. There are other policy tools that are being discussed that are still in the pipeline, he said at a news conference, adding that there is ample room in the government budget to raise debt and increase the deficit. China's economy has remained sluggish despite the lifting of COVID-19 restrictions at the end of 2022. Companies have cut back on hiring and wages and a prolonged downturn in the property market has deflated consumer confidence, curbing spending. The government has raised pensions and offered subsidies to people who trade in old cars or appliances for new ones, but such steps have failed to jolt economic growth. Chinese stock markets .

We are definitely in deflation and probably going through the second stage of deflation, said Robin Xing, chief China economist at Morgan Stanley, citing evidence from wage decreases

China surprised markets by cutting major short- and long-term interest rates in July, its first such broad move in almost a year, signalling policymakers' intent to strengthen economic growth

Around 12 mn students graduated this summer, but with even roles in remote areas attracting young Chinese with diplomas from top universities, aspiring professionals face toughest job market in years

While China pays attention to concerns of major economies about overcapacity, it too is concerned by trade threats like tariffs, Liao said

The cuts come after China last week reported weaker-than-expected second-quarter economic data and its top leaders met for a plenum that occurs roughly every five years

MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.1 per cent and was headed for its worst week in over a month with a 2.4 per cent loss

The first, second and seventh plenums typically focus on the power transition between Central Committees

The central bank has sounded warnings and introduced a flurry of measures, including plans to sell treasury bonds, to cool a long-running bond rally

While the average sale price of cars in China fell 13.4% in the past year, the average margin of automakers rose to 7.8% in 2023 from 6.3% the previous year