China Economy Forum

[JSCh]

FDI inflows to China hit record, slump in U.S., Britain: UNCTAD
Source: Xinhua| 2018-01-23 02:58:53|Editor: Mu Xuequan



GENEVA, Jan. 22 (Xinhua) -- Global flows of foreign direct investment (FDI) fell by 16 percent in 2017 to an estimated 1.52 trillion U.S. dollars, from a revised 1.81 trillion dollars in 2016, the UN Conference on Trade and Development (UNCTAD) said Monday.

UNCTAD released its Global Investment Trends Monitor and said the results were surprising in view of other positive economic indicators.

"FDI recovery continues to be on a bumpy road," said UNCTAD Secretary-General Mukhisa Kituyi. "While FDI in developing countries remained similar to the previous year, more investment in sectors that can contribute to the Sustainable Development Goals is still badly needed."

A slump in FDI flows to developed countries, down 27 percent, was the principal factor behind the global decline with the such investment down 32 percent in the United States and 90 percent in Britain.

This decline was softened by an 11 percent growth in flows to other developed economies, principally Australia.

Asia was largest region getting FDIs, said James Zhan, Director of UNCTAD's Investment Division, noting that inflows into China reached another record level.

"The decline of global FDI flows is in stark contrast to other macroeconomic variables, such as GDP and trade growth, which saw substantial improvements in 2017," said Zhan at a UN briefing.

"Upward synchronization of the trends in 2018 is probable, but risks are abundant," he cautioned.

FDI to developing economies remained stable, at an estimated 653 billion U.S. dollars, 2 percent more than the previous year.

Flows rose marginally in developing Asia and Latin America and the Caribbean, and remained flat in Africa. Developing Asia regained its position as the largest FDI recipient region in the world, followed by the European Union and North America.

In the world's transition economies, FDI declined by 17 percent to an estimated 55 billion U.S. dollars, mainly due to a drop in the Russia and lackluster inflows across most of the Commonwealth of Independent States (CIS).

 

[cirr]

China publishes general PMI to better track economy

2018-01-31 15:01 Xinhua Editor: Gu Liping

China's statistics authority, for the first time, published a general purchasing managers' index (PMI) covering both manufacturing and service sectors on Wednesday.

The general PMI came in at 54.6 for January, according to a statement of the National Bureau of Statistics (NBS). A reading above 50 indicates expansion and below reflects contraction.

Business activity in the two sectors was previously tracked by two separate indices published monthly, which the NBS said "lacks a way to reflect overall changes in the economy."

While old indices will remain, the new gauge will "provide a new perspective to monitor the macro economy, and enrich and improve the current PMI system," the NBS said, adding that it has undertaken more than two years of research and testing.

The NBS said the general PMI better synchronizes with the country's GDP movement, and is comparable from country to country.

"As of December, countries and regions including the eurozone, the United States, Britain, Germany, and Japan have compiled and published such an index," the NBS said.

China's manufacturing and non-manufacturing PMIs stood at 51.3 and 55.3 in January, respectively.

http://www.ecns.cn/business/2018/01-31/290896.shtml

 

[cirr]

Jan factory growth still strong

2018-02-02 13:30

Global Times Editor: Li Yan

China's manufacturing sector sustained growth at multi-month highs in January, a private business survey showed on Thursday, as factories continued to raise output to meet new orders, suggesting resilience in the world's second-largest economy.

The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) was at 51.5 in January, unchanged from the previous month. Analysts surveyed by Reuters had forecast a drop to 51.3.

December's reading was the highest in four months and above the 50-point mark that separates growth from contraction. The solid Caixin PMI readings indicate that China's economy is still expanding strongly as it nurtures new drivers of growth.

http://www.ecns.cn/business/2018/02-02/291244.shtml

 

[Tauren Paladin]

Wikipedia says that China's 2017 GDP nominal is $11.94 trillion according to IMF. I thought it would be $12.7 trillion.

India grew less than $200 billion in 2017 lol.

 

[Han Patriot]

Wikipedia says that China's 2017 GDP nominal is $11.94 trillion according to IMF. I thought it would be $12.7 trillion.

India grew less than $200 billion in 2017 lol.

It's 12.xx trillion, go to NBS.GOV and then convert it into dollar at 6.5, current exchange rate is 6.3

 

[Bussard Ramjet]

Wikipedia says that China's 2017 GDP nominal is $11.94 trillion according to IMF. I thought it would be $12.7 trillion.

India grew less than $200 billion in 2017 lol.

That is based on IMF october projections. Chinese currency appreciation was not taken into account as it happened in the second half.

This may change in April projections of IMF.

 

[AndrewJin]

Wikipedia says that China's 2017 GDP nominal is $11.94 trillion according to IMF. I thought it would be $12.7 trillion.

India grew less than $200 billion in 2017 lol.

Only 200 billion?
@Bussard Ramjet That is fake news!

 

[Bussard Ramjet]

Only 200 billion?
@Bussard Ramjet That is fake news!

Ratio is what matters. Last year Chinese nominal GDP grew fast largely due to better prices, and exchange rate appreciation.

China/India GDP is right now just above 5. I reckon in 10 years it will reduce to between 3 and 4. In the long term the trend is converging.

Also, the absolute difference between two economies doesn't matter. It is the relative difference.

 

[AndrewJin]

Ratio is what matters. Last year Chinese nominal GDP grew fast largely due to better prices, and exchange rate appreciation.

China/India GDP is right now just above 5. I reckon in 10 years it will reduce to between 3 and 4. In the long term the trend is converging.

Also, the absolute difference between two economies doesn't matter. It is the relative difference.

It is fake news, supa powa is the world's best economy, having better global hunger index rank than North Korea and Sub-Sahara Africa.

China adding entire supa powan economy every 1-3 years is just supa powan dream.

 

[Bussard Ramjet]

It is fake news, supa powa is the world's best economy, having better global hunger index rank than North Korea and Sub-Sahara Africa.

That is certainly not what I said.

China adding entire supa powan economy every 1-3 years is just supa powan dream.

Again, that is due to base effect.

US in 1900s, and 2000s was also growing at an absolute number much larger than China's absolute growth. And was adding one China in few years. However sustained high growth leads to larger base size.

Similarly, in India's case, India will very easily grow at 10% nominal growth rates. So in 7 years will be a 5 trillion economy.

China's nominal growth rates in absolute amounts will taper off.

 

[AndrewJin]

That is certainly not what I said.



Again, that is due to base effect.

US in 1900s, and 2000s was also growing at an absolute number much larger than China's absolute growth. And was adding one China in few years. However sustained high growth leads to larger base size.

Similarly, in India's case, India will very easily grow at 10% nominal growth rates. So in 7 years will be a 5 trillion economy.

China's nominal growth rates in absolute amounts will taper off.

It's fake news.
Both US and China are adding entire supa powan economy every a couple of years, this s fake news!

But for Supa Powa 2012, the question is ,can they surpass Central China when the latter one has faster nominal growth?
The distance between SP2012 and Central China is getting bigger and bigger!

 

[Bussard Ramjet]

It's fake news.
Both US and China are adding entire supa powan economy every a couple of years, this s fake news!

No, it is not fake news.

And anyways can you please turn off your trolling mode at least while talking to me?

But for Supa Powa 2012, the question is ,can they surpass Central China when the latter one has faster nominal growth?

Perhaps not, but than Central China itself will have a larger fraction of China's GDP.

The distance between SP2012 and Central China is getting bigger and bigger!

Yes, but distance between India and China will reduce.

The distance should be measured in relative terms.

The absolute difference matters little. For example, if US's economy was 20.1 trillion, and China's economy 20 trillion, than there is pretty much no difference in size; meanwhile let's say some country A had a GDP of 100 billion and other country B had GDP of 200 billion, than this difference is huge.

 

[AndrewJin]

No, it is not fake news.

And anyways can you please turn off your trolling mode at least while talking to me?



Perhaps not, but than Central China itself will have a larger fraction of China's GDP.



Yes, but distance between India and China will reduce.

The distance should be measured in relative terms.

The absolute difference matters little. For example, if US's economy was 20.1 trillion, and China's economy 20 trillion, than there is pretty much no difference in size; meanwhile let's say some country A had a GDP of 100 billion and other country B had GDP of 200 billion, than this difference is huge.

I hope Central China could one day have slower nominal growth than sp2012.......
But it seems that it was one day smaller than SP2012 economy, and all of a sudden surpass it!

Same things can be said about Western China vs SP2012...
It won't take long for Western China to surpass SP2012.

 

[Galactic Penguin SST]

China becomes Vietnam's biggest export market in January: Vietnamese customs

February 23, 2018

HANOI, Feb. 23 (Xinhua) -- China overpassed the United States to become Vietnam's biggest export market in January, the General Department of Vietnam Customs said on Friday.

Vietnam exported roughly 3.7 billion U.S. dollars worth of goods to China last month, up 106 percent against January 2017, said the department.

Specifically, Vietnam exported nearly 895 million U.S. dollars worth of phones and their components to China, a 19-fold increase from January 2017; some 691 million U.S. dollars worth of computers, electronic appliances and components, up 80.1 percent; and 296.3 million U.S. dollars worth of vegetables and fruits, up 68.6 percent.

Last month, Vietnam spent nearly 5.8 billion U.S. dollars importing products from China, said the department.


http://en.people.cn/n3/2018/0223/c90000-9429228.html

 

[cirr]

China's logistics activity picks up as economy firms

2018-04-10 16:53 Xinhua Editor: Gu Liping

China's logistics activity picked up in March as the economy continued to show signs of firming.

The logistics performance index for March came in at 53.4 percent, up from 50 percent in February and ending a falling streak of three consecutive months, according to the National Development and Reform Commission (NDRC).

A reading above 50 percent indicates logistics service expansion while a reading below reflects contraction.

In breakdown, the sub-index for new orders expanded to 52.5 percent from 50.4 percent in February, while that for inventory turnover came in at 50.7 percent, an increase of 5.1 percentage points from the previous month.

The sector's business expectation index remained in the expansionary territory of 61 percent, suggesting expanding activity of both upstream and downstream industries amid improving demand, the NDRC said.

Earlier statistics showed growth as the manufacturing purchasing managers' index rose to 51.5 last month, the strongest level this year and remaining in expansionary territory for 20 straight months.

The NDRC said development of the logistics sector has been stable and improving, which has laid a sound foundation for economic growth in the second quarter.

The country's GDP grew 6.9 percent in 2017. GDP growth data for the first quarter are scheduled to be released on April 17.