• Wednesday, February 19, 2020

Reuters: China's industrial profits shrink most since late 2011

Discussion in 'World Affairs' started by Get Ya Wig Split, Mar 27, 2019.

  1. Get Ya Wig Split

    Get Ya Wig Split BANNED

    Messages:
    573
    Joined:
    Feb 22, 2017
    Ratings:
    +1 / 467 / -3
    Country:
    United States
    Location:
    United States
    China's industrial profits shrink most since late 2011

    [​IMG]

    The sharp decline in profits suggests further trouble for the world’s second largest economy, which expanded at its slowest pace in almost three decades last year. The government has already lowered the economic growth target this year to 6.0-6.5 percent, from 6.6 percent in 2018.

    Profits notched up by China’s industrial firms in January-February slumped 14.0 percent year-on-year to 708.01 billion yuan ($105.50 billion), the National Bureau of Statistics (NBS) said on its website on Wednesday. It marked the biggest contraction since Reuters began keeping records in October 2011.

    The data combines figures for January and February to smooth out distortions caused by the week-long China’s Lunar New Year.

    The drag was mainly due to price contractions in key industrial sectors such as auto, oil processing, steel and chemical industries, Zhu Hong of the statistics bureau said in a statement accompanying the data.


    Zhu said the timing of Lunar New Year holidays that fell in early February also had a bigger negative impact on business operations this year than in 2018.

    The slowdown was in line with Jan-Feb’s factory output growth, which slumped to a 17-year low pressured by weak demand at home and abroad.

    The trade war with the United States has put a dent on factory activity, corporate earnings, business sentiment and overall consumption in a blow to the economic outlook.

    Policymakers have acknowledged the country’s economy is facing increasing downward pressure, hurt by multi-year campaigns to curb debt risks and pollution, while the trade war with the United States took a toll on export orders and employment.

    Beijing is beefing up measures to support the manufacturing industry by cutting the value-added tax, increasing infrastructure spending and reducing direct government intervention.


    Yet, the support measures are taking time to kick in. Most analysts believe economic activity may not convincingly stabilize until the middle of the year.

    Earlier this month, premier Li Keqiang announced hundreds of billions of dollars in additional tax cuts and infrastructure spending, but officials vowed they would not resort to massive stimulus like in the past, which had driven up a massive debt pile.

    https://www.reuters.com/article/us-china-economy-industrial-profits-idUSKCN1R804O?
     
    Last edited: Mar 27, 2019
  2. Get Ya Wig Split

    Get Ya Wig Split BANNED

    Messages:
    573
    Joined:
    Feb 22, 2017
    Ratings:
    +1 / 467 / -3
    Country:
    United States
    Location:
    United States
  3. shambhu

    shambhu BANNED

    Messages:
    196
    Joined:
    Mar 9, 2019
    Ratings:
    +0 / 63 / -0
    Country:
    India
    Location:
    India
    this will go for sometime .
     
  4. Get Ya Wig Split

    Get Ya Wig Split BANNED

    Messages:
    573
    Joined:
    Feb 22, 2017
    Ratings:
    +1 / 467 / -3
    Country:
    United States
    Location:
    United States
  5. SBUS-CXK

    SBUS-CXK SENIOR MEMBER

    Messages:
    5,099
    Joined:
    Mar 18, 2016
    Ratings:
    +0 / 7,164 / -12
    Country:
    China
    Location:
    China
    But... China trade surplus with the US reached the peak.

    US Trade Gap Widens to $621 Billion, 10 Year-High in 2018

    https://www.telesurenglish.net/news...llion-10-Year-High-in-2018-20190307-0030.html

    China’s trade surplus with the U.S. hit a record $34.1 billion in September amid trade war
    https://www.washingtonpost.com/worl...5875bac0b1f_story.html?utm_term=.c3425b74eb6e

    @Get Ya Wig Split You're just a joke. Low IQ. LOL.:crazy::rofl::rofl::rofl::rofl:

    Ignore this idiot.
    The cooperation between China and India is gratifying. Recently, we have just helped Mumbai complete its first tunnel.
     
  6. Get Ya Wig Split

    Get Ya Wig Split BANNED

    Messages:
    573
    Joined:
    Feb 22, 2017
    Ratings:
    +1 / 467 / -3
    Country:
    United States
    Location:
    United States
    China’s economic concerns mount as industrial profits crash to lowest since 2011

    [​IMG]


    China’s industrial companies saw their profits fall by 14 per cent in the first two months of the year as the impact of the trade war with the United States and widespread economic slowdown continued to take root.

    Industrial profits stood at 708 billion yuan (US$105.4 billion) for January and February, according to figures released by the National Bureau of Statistics (NBS) on Wednesday.

    This was the worst performance since October 2011, when the method for measuring industrial profits was changed. Overall, including the former methodology, it was the biggest collapse since May 2009.

    This followed a 1.9 per cent decline in December and marks the continuation of a downward trend in the world’s second largest economy. December’s industrial profits reading had been the worst since the end of 2015 and the second consecutive decline.

    [​IMG]


    The statistics bureau did not release the year-on-year change and value in January or February alone due to the differences in the timing of the Lunar New Year holiday, which took place in February and was earlier than last year.

    The NBS attempted to blame the Lunar New Year holiday for the slump, stating: “Compared with January-February of last year, this year's holiday factor has a longer impact on the production and operation of industrial enterprises.”

    However, the new data shows worrying figures across the board in China’s key industrial sectors as manufacturing profits fell by 15.7 per cent year-on-year.

    The decline in China’s automotive sector has been felt by companies in that industry, which reported profit fall of 42 per cent after China’s vehicles sales fell for the eighth straight month in February.

    Within that, oil processing was the worst performing sector as companies saw their profits dramatically crash by 70.4 per cent. In ferrous metal smelting, which includes iron, profits fell by 59 per cent.

    Coal profits crashed 23.2 per cent, while chemicals slumped 27.2 per cent. These are all crucial industries in China which employ huge numbers of people.

    The data tracks profits from firms that report more than 20 million yuan (US$2.98 million) in revenue from their main business, and it is divided into private and public sector companies.

    Industrial state-owned enterprises saw their profits collapse by 24.2 per cent year on year, while private companies experienced a loss in profits of 5.8 per cent.

    All eyes will now be on the official purchasing managers’ index data for March, which is released on Sunday. This will be an early indicator as to whether the sluggish performance in the first quarter of 2019 is to continue for China’s economy.

    Analysts have also earmarked April as the point at which the effects of the US-China trade war will begin to be seen clearly in data. Previous figures have been skewed by export front-loading – whereby companies made their purchase orders earlier to avoid tariffs, however, these are expected to have faded.

    US and Chinese negotiators will meet again in Beijing on Thursday and Friday in a bid to move closer to an end to the trade war which has run since July.

    https://www.scmp.com/economy/china-...nomic-concerns-mount-industrial-profits-crash

    China should better come back to the negotiating table for its own sake. As it stands, the U.S. economy will be fine through this trade war, its China's "pseudo capitalist" economy that will be hurt, badly. @Two

    Tread lightly lil punk @Two :yahoo:
    [​IMG]
     
  7. SBUS-CXK

    SBUS-CXK SENIOR MEMBER

    Messages:
    5,099
    Joined:
    Mar 18, 2016
    Ratings:
    +0 / 7,164 / -12
    Country:
    China
    Location:
    China
    ??????

    Your low IQ is out of control.
    China’s trade surplus with the U.S. hit a record $34.1 billion in September amid trade war

    Trump and China fire off largest tariffs yet

    China and the U.S. imposed fresh new tariffs on each other's goods on Sept. 24, in a further escalation of the bitter trade war. (Reuters)

    By Anna Fifield
    October 12, 2018
    BEIJING — China’s trade surplus with the United States hit a record last month, defying — for now, at least — President Trump’s predictions that tariffs would help redress the trade imbalance.

    Although economists expect the American tariffs to eventually have an impact, the trade statistics reinforce the widely held notion here that there will be no quick end to the trade war between Washington and Beijing.

    “It’s obvious that the immediate effects of the trade war are the exact opposite of what the Trump administration had been planning,” said Andrew Polk of Trivium China, a Beijing-based economics research firm.

    “We expect the dynamic to change once we get a bit deeper into this, but for now China is trying to outrun the next round of tariffs,” he said.

    China enjoyed a record high $34.1 billion trade surplus with the United States in September, taking the surplus for the year to date to $225.8 billion, according to Chinese statistics released on Friday. That’s significantly higher than the $196 billion recorded between January and September last year.

    The increase is the result of both increasing exports from China to the United States — up 14.5 percent from the same month last year — and a decline in the goods China is buying from the country.

    Trump and China’s Xi to meet in bid to end trade war tensions ]

    The direct and indirect effects of the ongoing trade frictions are “generally controllable,” Customs Department spokesman Li Kuiwen said Friday. But global trade would continue to face challenges as the U.S.-China trade frictions “have been escalating and other unstable factors still exist caused by a number of economic uncertainties worldwide,” he said.

    The second round of tariffs the Trump administration imposed on China came into effect on Sept. 24, so the increase in exports last month might have been the result of Chinese companies rushing to sell their products before the additional duties were added.

    After imposing tariffs on $50 billion in Chinese goods over the summer, the Trump administration last month added 10 percent tariffs to another $200 billion of Chinese products, including household items such as furniture and toys as well as industrial equipment. The tariffs are set to rise to 25 percent in January if the trade dispute is not resolved by then, and Trump has vowed to impose tariffs on the remaining $267 billion of Chinese imports.

    China retaliated last month by imposing tariffs ranging from 5 to 10 percent on $60 billion of American goods, putting them into effect on the same day as the American measures.

    But it was still too early to see the effects of the tariffs, said Julian Evans-Pritchard, China economist at Capital Economics, a consultancy.

    “The way the U.S. has structured the tariffs encourages front-loading because firms that know they’re going to hit with tariffs would rather pay 10 percent than 25 percent,” he said.

    Plus, the 10 percent tariffs were almost entirely offset by the fall in the Chinese currency, which has depreciated by more than 8 percent since June. This makes Chinese products cheaper overseas.

    Trump should take notice of the statistics, said Huo Jianguo, a trade expert at the Center for China and Globalization in Beijing.

    “He won’t be happy with these figures but it proves that tariffs don’t help curb exports,” Huo said. “Both sides need to find a way to talk and make some other arrangements.”

    Trump and Chinese President Xi Jinping have agreed to meet next month at the G-20 summit in Buenos Aires, in hopes of resolving their intensifying trade conflict. These would be the first direct talks since August, but with both sides digging in their heels, there are few hopes the leaders can secure a major breakthrough.

    Trump said Thursday that his tariff strategy was working. “It’s had a big impact,” Trump said in a “Fox & Friends” interview. “Their economy has gone down very substantially and I have a lot more to do if I want to do it.”

    [China tells Trump administration to stop its ‘misguided’ actions and allegations ]

    But China has been standing firm, repeatedly saying that the only solution was through negotiation and compromise.

    Trump’s strategy amounted to “bullying,” said Yu Xiang, director of the division of American economic studies at the China Institutes of Contemporary International Relations.

    “Bullying might be effective for small economic entities, but it will not be effective against a big economic power,” Yu wrote in a column published Friday in the state-run China Daily. “The fight won’t end in the blink of an eye, considering it is between the world’s two biggest economies.”

    Indeed, analysts expect the trade imbalance to continue to widen over the next few months before the next round of American tariffs kick in, in no small part because the divergence in consumer demand in the two countries.

    “China’s trade surplus will keep rising because the domestic economy is cooling down,” said Andy Xie, a Shanghai-based independent economist. “If China wants the surplus to come down, they have to embark on structural reforms.”

    https://www.washingtonpost.com/worl...5875bac0b1f_story.html?utm_term=.47a525724542

    @Get Ya Wig Split You really is a joke.
    @RisingShiningSuperpower @d00od00o There is a false flag here. Please educate him.