China Economy Forum

[Chinese-Dragon]

China November factory output jumps to eight-month high

By Aileen Wang and Koh Gui Qing

BEIJING | Sun Dec 9, 2012 2:46am EST

BEIJING (Reuters) - Growth in China's factory output and retail sales jumped to eight-month highs in November as consumer inflation bounced off 33-month lows in the latest sign that its economy is snapping out of a protracted slump.

Analysts said Sunday's data showed China is enjoying an enviable mix of benign inflation and rebounding economic growth that allows Beijing to stand still on monetary and fiscal policies, or switch to an easier stance if needed.

"The Chinese economy is now in a sweet spot and can stay in the sweet spot through the first half of 2013," said Ting Lu, an economist at Bank of America-Merrill Lynch. "Beijing will be happy to sustain the current policy stance."

Data from the National Bureau of Statistics showed output from Chinese factories beat forecasts to climb 10.1 percent in November from a year ago, its best performance since March.

Annual growth in retail sales also surprised by jumping 14.9 percent in November, while fixed asset investment rose 20.7 percent in the first 11 months of the year, a shade below forecasts.

Ahhh... I was just about to post that.

This is the good news that we have been waiting for. All economic indicators are going up.

 

[cirr]

Ahhh... I was just about to post that.

This is the good news that we have been waiting for. All economic indicators are going up.

I am a pessimist but I believe that the economy is now back on a sound footing and may be expected to expand some 8.5% in 2013，which with a moderately appreciating yuan，will translate into a GDP that's infinitely close to 10 trillion US dollars。

A brand new Yangzi River Bridge opens for traffic：

 

[Chinese-Dragon]

I am a pessimist but I believe that the economy is now back on a sound footing and may be expected to expand some 8.5% in 2013，which with a moderately appreciating yuan，will translate into a GDP that's infinitely close to 10 trillion US dollars，

The current 2013 projections of 8.5% are great if we can get them.

Even sustaining 7.5% would be really amazing, considering that our economy was already 7.3 trillion in 2011.

With a larger base economy we can get away with lower growth rates, as long as the growth is sustainable.

 

[cirr]

The current 2013 projections of 8.5% are great if we can get them.

Even sustaining 7.5% would be really amazing, considering that our economy was already 7.3 trillion in 2011.

With a larger base economy we can get away with lower growth rates, as long as the growth is sustainable.

My crystal ball tells me that 2015 is the year in which our per capita GDP will cross the $10，000 mark。

If it does not happen, all it means is that the rest of the world economy, especially the eurozone, the US and Japan, is still in sh1t, which I couldn't care less about.

 

[Shandong]

Jinan dragon Austrian Building, located in Jinan Olympic Sports Center Jingshi East Road, construction area of 370,000 square meters, cost 4 billion the inside corridor circumference of 1 km, more than 40 lifts, there are 45,000 the optical telephone and computer information point socket .World's Second Asia the monomer building, the world's largest single building for the Pentagon, Long Austrian Building, is the country's largest government buildings, mainly for the Jinan Municipal Government and the offices of the various departments, the Eleventhcommand center and press center of the National Games, is now resident Jinan municipal government.

济南龙奥大厦，位于济南经十东路奥体中心，建筑面积37万平米，造价40亿，里面走廊周长为1公里，有40多部电梯，光电话和电脑信息点插座就有45000个。世界第二亚洲第一的单体建筑，世界第一大单体建筑为美国五角大楼，龙奥大厦是全国最大的政府大楼，主要为济南市政府及各个职能部门的办公场所，亦是十一届全运会的指挥中心和新闻中心，现为济南市委市政府驻地。

 

[SpArK]

China 'among world's most unequal countries'

SHANGHAI — China's wealth gap has widened to a level where it is among the world's most unequal nations, a Chinese academic institute said in a survey, as huge numbers of poor are left behind by the economic boom.


China's Gini coefficient -- a commonly used measure of inequality -- was 0.61 in 2010, the Survey and Research Center for China Household Finance said, well above what some academics view as the warning line of 0.40.


A figure of 0 would represent perfect equality, and 1 total inequality.


"Currently, China's household income gap is huge," said the institute, founded by the Southwestern University of Finance and Economics and the Institute of Financial Research, which operates under China's central bank.


"The Gini coefficient is as high as 0.61, rare in the world."


China's growing wealth gap is a major concern for Communist authorities, who are keen to avoid public discontent that could lead to social unrest in the country of 1.3 billion people.


In a sign of the sensitivity surrounding the issue the government has not released an official Gini coefficient for the country as a whole for more than a decade, since it put the statistic at 0.412 in 2000.


A figure of 0.61 would put China at the top of a list of 16 countries by 2010 Gini coefficient on the World Bank website. The largest set of figures available on the site is for 2008, covering 47 countries and headed by Honduras on 0.613.

The Global Times newspaper, which reported the latest survey results on Monday, said China's wealth gap had reached an "alarming" level.


But the research centre played down its own findings, saying such a phenomenon was common in rapidly developing economies.

It called on the government to use its vast financial resources to support low-income earners in the short term, while improving education to help address the imbalance in the long term.
"The Gini coefficient certainly points to the serious issue of income inequality," the director of the Chengdu city-based centre Gan Li told AFP.

"But more importantly about the interpretation of the figure is that it does not necessarily indicate imbalance in China's economy," he said, adding it was normal for greater resources to flow to developed areas.

"There's no need to make a big fuss about it."

The government-backed Chinese Academy of Social Sciences estimated China's Gini coefficient at nearly 0.47 in 2005.

Another research institute, the Centre for Chinese Rural Studies, in August put the Gini coefficient at around 0.39 for rural residents last year, but gave no figure for the overall national level.

AFP: China 'among world's most unequal countries'

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[KRAIT]

This gap will reduce when China gets close to developed status from developing. Population dynamics also play a major role. One has to see the income generation population and dependent population. Let the population stabilize. China is still in transition.

 

[northeast]

If it's correct，considering the gdp/capita of china is 3 times bigger than india，then the number of chinese billionaires would be somewhere about 10 times of indian.but that didn't happen.So I guess this researsh is not so accurate.

 

[jhungary]

actually UN (Yes, United Nation) have developed a thing called "Human Development Index" to rank people in different country according to a matrix of Health, Education, Income and Standard of Living.

This index is way more accurate than the GDP and GNI Crap used to measure money only.

Human Development Index - Wikipedia, the free encyclopedia

Question : How North Korea fare on this Gini thing??

 

[OrionHunter]

In China, the rich get richer and the poor, poorer! About 13 percent of China’s population—about 203 million people— live on less than $1 a day. About 42 percent of China’s population—about 593 million people— live on less than $2 a day. Most are in the countryside.

On the one hand you have a 'shining' Shanghai and on the other, cities and towns where poor rural families often live in bamboo frame houses or mud-and-straw bricks homes with packed earth floors. Thatch-roof mud-wall houses found in some parts of Sichuan, Hunan and Yunnan provinces look like African huts. Houses with more than two story are rare. Progress and wealth means a family can move out of their mud and stone hut into a concrete house!

More here...INCOME GAP AND POOR PEOPLE IN CHINA - China | Facts and Details

Now I'm gonna sit back, grab some popcorn and watch the trolls and flamers take over and exhibit their literary talents and great knowledge of Indian toilets! I love all the baloney that's spewed out! He who laughs, lasts! So bring it on!

 

[Don Jaguar]

actually UN (Yes, United Nation) have developed a thing called "Human Development Index

The Human Development Index (HDI) is a comparative measure of life expectancy, literacy, education, standards of living, and quality of life for countries worldwide. It is a standard means of measuring well-being, especially child welfare. It is used to distinguish whether the country is a developed, a developing or an underdeveloped country, and also to measure the impact of economic policies on quality of life. The index was developed in 1990 by Pakistani economist Mahbub ul Haq and Indian economist Amartya Sen.

List of countries by Human Development Index - Wikipedia, the free encyclopedia

 

[BigDaddyWatch]

In China, the rich get richer and the poor, poorer! About 13 percent of China’s population—about 203 million people— live on less than $1 a day. About 42 percent of China’s population—about 593 million people— live on less than $2 a day. Most are in the countryside.

On the one hand you have a 'shining' Shanghai and on the other, cities and towns where poor rural families often live in bamboo frame houses or mud-and-straw bricks homes with packed earth floors. Thatch-roof mud-wall houses found in some parts of Sichuan, Hunan and Yunnan provinces look like African huts. Houses with more than two story are rare. Progress and wealth means a family can move out of their mud and stone hut into a concrete house!

More here...INCOME GAP AND POOR PEOPLE IN CHINA - China | Facts and Details

Now I'm gonna sit back, grab some popcorn and watch the trolls and flamers take over and exhibit their literary talents and great knowledge of Indian toilets! I love all the baloney that's spewed out! He who laughs, lasts! So bring it on!

China in 2008 has 13,06% of its population living on less than 1 dollar a day and about 29,79% of the population living on less than 2 dollars a day.

India in 2010 has 32,67% of its population living on less than a dollar a day and has 68,72% of its population living on less than 2 dollars a day.

Pakistan in 2008 has 21,04% of its population living on less than 1 dollar a day and about 60,19% of the population living on less than 2 dollars a day.

Very interesting despite all the talk of India becoming a superpower and Pakistan a failed state, Pakistan has actually done better alleviating poverty in her borders than India.

List of countries by percentage of population living in poverty - Wikipedia, the free encyclopedia

 

[terranMarine]

Brother you just smashed these Indians with a report based on facts. They think the situation in India is better than in China when it comes down to poverty.

 

[KRAIT]

China in 2008 has 13,06% of its population living on less than 1 dollar a day and about 29,79% of the population living on less than 2 dollars a day.
India in 2010 has 32,67% of its population living on less than a dollar a day and has 68,72% of its population living on less than 2 dollars a day.
Pakistan in 2008 has 21,04% of its population living on less than 1 dollar a day and about 60,19% of the population living on less than 2 dollars a day.
Very interesting despite all the talk of India becoming a superpower and Pakistan a failed state, Pakistan has actually done better alleviating poverty in her borders than India.
List of countries by percentage of population living in poverty - Wikipedia, the free encyclopedia

Topic is not the level of poverty. Its about Economic Inequality which can be in developed nations too. Kindly understand the difference rather than bashing both countries on banned topics like Poverty and Failed state.

Read this document, A UNICEF Report on Global Inequality and Reasons behind it.

 

[Pakistanisage]

If it's correct，considering the gdp/capita of china is 3 times bigger than india，then the number of chinese billionaires would be somewhere about 10 times of indian.but that didn't happen.So I guess this researsh is not so accurate.

That argument would be a tough sell primarily because india has always been a capitalist country ( even under the Mughal and British rule), so Indian wealth has been accumulated in centuries. Some of Indian Billionaires are third or fourth generation billionaires like Tata's and Birla's. Chinese Billionaires are an outcome of last twenty years of economic policies.

Am I wrong ?