China's economic slowdown painful despite stimulus

Moderators: Moderators, Administrator

China's economic slowdown painful despite stimulus

Joined: March 14th, 2006, 12:06 am

July 12th, 2012, 4:13 pm #1


http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
By the time you realize that this signature doesn't say anything it's too late to stop reading it
Quote
Like
Share

Joined: December 16th, 2005, 11:53 am

July 12th, 2012, 6:20 pm #2

China stopped stimulating economy at the end of 2010 due to the hot property market and ease the inflation (reached 6% at peak), on the contrary China has been try to cool down the economy since then. China banks' interest rates and reservation ratio are still at high point and China, and very high comparing with other countries.

The twice of interest rate cuts don't change China's conservation at all because the rates are still high. and china's inflation is only about 2%.


7.3% of growth is painful, then how about shitty India?

China is still the fastest growing economy, the growth gap between China and others are still the same.
Quote
Like
Share

Joined: March 14th, 2006, 12:06 am

July 12th, 2012, 6:44 pm #3

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
\\7.3% of growth is painful ? \\


For China, yes, it is painful. Just ask those people who are getting laid off or those companies who cant pay salaries since their customers are unable to pay. As far India, yes, it is painful to Indians too and who suggested thats not the case ?






===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
By the time you realize that this signature doesn't say anything it's too late to stop reading it
Quote
Like
Share

Joined: December 16th, 2005, 11:53 am

July 12th, 2012, 8:13 pm #4

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
7.3% growth is painful for China, less growth for shitty India is not.

HAHA! low IQ Indians
Quote
Like
Share

Joined: March 14th, 2006, 12:06 am

July 12th, 2012, 8:40 pm #5

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
LOL, do you even read my posts before typing that gibberish !

===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
By the time you realize that this signature doesn't say anything it's too late to stop reading it
Quote
Like
Share

Joined: December 16th, 2005, 11:53 am

July 12th, 2012, 9:06 pm #6

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
You dump and the author even don't know China had been cooling down the economy until May when China's inflation is back to 3% and 2.2% in June.

With huge cash in hands and low inflation, China will loose the tight financial control again logically, but not real estate market. But this is not stimulus since China's interest rate is still very high, you dump Indian!
Quote
Like
Share

Joined: March 14th, 2006, 12:06 am

July 13th, 2012, 12:47 am #7

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
You are going on a tangent and then calling others dumb ? The whole point is the demand from oversees took a deep dive, industrial outout is shrinking, domestic demand is going no where to make up the fall in demand oversees, capital spending and investments which is the majority and significant part of china's growth ended up creating massive excess capacity in industry after industry and the chinese are betting their hopes on revival of export markets in europe and US. Of course, it may be a U shaped trend and the economy may rebound in future quarters but that is equally true about other economies as well and between all this the common chinese is sufferring.

===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
By the time you realize that this signature doesn't say anything it's too late to stop reading it
Quote
Like
Share

Joined: December 16th, 2005, 11:53 am

July 13th, 2012, 1:35 am #8

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
it is not wrong to call you a dumb. China's industry is still growing, not shrink, growing at near 10%. Do you dumb know the difference of slower growth and shrinking?

China is connected with other countries. Other countries slow down is impacting China soome. That's the impact from outside and China's economical foundation is solid, China is still growing at decent pace. That's why many other countries are counting on China.

The root of India's economical problems came from inside, small scale and low level of industry that cannot compete against others. There are some reports showing that China's toys even are enjoying beig market share. India's agriculture is very primitive and is heavily depends on monsoon. That's why India has more farming land than China but can only produce less than half of what China can produce. India's infrastructure is in pathetic state. India has built less than 10000 km of railways in 65 years after India is in you indians' hands , that's only 1/3 of China had done in the 30 years from 1950-1980 (before the reform). India has less than 2 thousand of real expressways.

India's trade deficit is more than half of what India can export every year. Indian currency is shitty and its value is shrinking. India inflation is still very high.
Quote
Like
Share

Joined: October 23rd, 2003, 11:23 am

July 13th, 2012, 1:35 am #9

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
China's economic slowdown is actually a very bad news, not just for China but for the world. Many countries depend on the Chinese growth for their own economic growth. It'll cause a domino affect around the world and if China doesn't recovers quickly its gonna look ugly. India or Russia isn't immune to it.
Quote
Like
Share

Joined: May 17th, 2004, 6:31 am

July 13th, 2012, 3:53 am #10

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
As I say again !!! India is better off under Brit rule.

====================================


Click here for Poverty: India Vs Africa



01001001 01101110 01100100 01101001 01100001 00100000 01101001 01110011 00100000 01100001 00100000 01001010 01101111 01101011 01100101 00101110
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Quote
Like
Share

Joined: December 16th, 2005, 11:53 am

July 13th, 2012, 5:20 am #11

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
China's current growth is more sustainable and much better. China has achieved double digit growth for long time. No other major country did that and I don't think any other major country will be able to achieve this.

The more important, China's growth is still the fastest one among major economies.

Western media is picturing China's sustainable growth as a disaster. But this is not a bad thing for China at all. Wester countries are using media to push China to simulate economy as China did in 2008 to save them. No! The stupid Premier Wen of China should learn some lessons now.

China now can buy raw material at much lower price than last year. This is a big saving considering the scale of China's raw material imports. China imports more than 200 miiliion tons of oil each year, 600-700 million tons of iron ore, 150 millon tons of coal, 4-5 million tons of copper......each YEAR. That's a long list. You can understand why China's imports are slowing down, and the westerners are crying.

China is expecting the price of raw materials will go down further. That's why China is import less materials and is selling some from storage to the international market. China will buy a lot more when the prices are better for China.

Quote
Like
Share

Joined: March 14th, 2006, 12:06 am

July 13th, 2012, 11:23 am #12

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
\\China is connected with other countries. Other countries slow down is impacting China soome. That's the impact from outside and China's economical foundation is solid, China is still growing at decent pace. That's why many other countries are counting on China.\\


China's economic foundation matters less if china is connected to the world to such an extent that a sneez in US and Europe will make China cough.Irrespective of whether, the damage is from china or from outside, the chinese economy at the moment is going down and the people are feeling the pain.I am unable to understand why the chinese members here are denying the obvious ! lol

===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
By the time you realize that this signature doesn't say anything it's too late to stop reading it
Quote
Like
Share

Joined: December 16th, 2005, 11:53 am

July 13th, 2012, 3:26 pm #13

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
In your stupid India's imagine, China's growth is solely on others. When others down China's economical foundation wouls shake and would go down. but that's a sad stituation for India, not China. That's a big joke of India who is ofter claiming India's economy is more disconnected.

When other countries have trouble and China is in tight financial policies after 2011, China's industry growth is still close to 9.5%.

Your India's industry is in pathetic situation.
Quote
Like
Share

Joined: March 14th, 2006, 12:06 am

July 13th, 2012, 4:15 pm #14

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
\\In your stupid India's imagine, China's growth is solely on others. When others down China's economical foundation wouls shake and would go down.\\

China's growth is mainly (not solely) because of its exports which are the foundation of its economic growth.When its markets are down, that WILL effect china's economy in a major way. If you are denying this, you are the one who is stupid not others.

===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
By the time you realize that this signature doesn't say anything it's too late to stop reading it
Quote
Like
Share

Joined: May 13th, 2006, 11:14 am

July 14th, 2012, 1:54 am #15

http://www.sfgate.com/news/article/Chin ... 700883.php

China's economic slowdown painful despite stimulus

JOE McDONALD,
AP Business Writer
July 12, 2012

BEIJING (AP) China's economic slowdown slammed into Li Fangliang, cutting sales at his Shanghai auto parts store by half.

"There are just fewer and fewer customers," said Li, who has avoided layoffs among his four employees. "I plan to start a shop online to find new markets."

From shopkeepers to shipbuilders, some areas are feeling more pain from China's deepest slowdown since the 2008 global crisis than still-robust headline growth of about 8 percent might suggest. Higher spending by state industry and government-directed investment is pumping up the world's second-largest economy, but that is masking the fact that the private sector is cutting jobs and scrambling to prop up plunging sales.

Data due out Friday are expected to show growth in the three months ending in June fell as low as 7.3 percent, down from the previous quarter's nearly three-year low of 8.1 percent. That is in line with this year's official 7.5 percent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

"Domestic demand remains weak," said JP Morgan economist Francis Fu in a report. "Corporate profits have continued to decline and incentive for business investment is low."

Other industries including cargo handling and manufacturers of shoes, clothing, optical fiber and wind turbines are suffering lower profits or losses and cutting jobs, according to Chinese news reports.

Job losses could fuel political tensions, eroding economic gains that underpin the Communist Party's claim to power. The party is trying to enforce calm ahead of a handover of power to a younger generation of leaders this year. Though China's growth even now is higher than those of developed economies, many industries depend on a much faster expansion to propel demand for new factories, cargo ships and other goods.

Construction, which supports millions of jobs, was plunged into a deep freeze by limits imposed on home purchases to cool surging prices. Demand fell further as companies facing weak sales put off building new facilities.

"A lot of building projects are half-finished and forced to stop. I think it is even worse than 2008," said a manager for Hangzhou Yuanlong Construction Co. in the eastern city of Hangzhou. She would give only her surname, An.

The company, with 20 employees and four teams of independent construction contractors, is owed 2 million yuan ($300,000) by cash-strapped customers and is having trouble collecting, An said.

"Our boss is looking for new opportunities," she said. "Otherwise we are not going to survive."

In Guangdong province in the southeast, a leading export manufacturing region that has been battered by the fall in global demand, the slowdown was "more severe than expected," the official Xinhua News Agency cited Governor Zhu Xiaodan as saying.

Guangdong's economic output in the first half grew 7.4 percent over a year earlier, below the official target, Zhu was cited as saying Wednesday.

Beijing has cut interest rates twice since early June but economists say companies are reluctant to take on more debt. Authorities have reduced fuel prices and are injecting money into the economy through higher spending on low-cost housing and other public works. That will channel money into government-owned construction companies.

On Thursday, China's main government pension fund added its financial firepower to the construction campaign, announcing 1 billion yuan ($159 million) in financing for a public housing project in Wuxi, a city northwest of Shanghai. The National Society Security Fund said it will finance other housing projects but gave no details.

Some economists suggest the decline might be more severe than reported, citing rumors that utility companies have been told to make the economy look healthy by inflating electricity consumption data a key indicator of industrial activity.

Yu Bin, a Cabinet researcher, rejected those suggestions at a briefing Thursday. He said the slowdown in richer east coast cities such as Beijing and Shanghai is being offset by stronger growth of up to 10 percent in less-developed central and western regions. Companies are investing more there as incomes and consumer spending rise.

"If you go to western parts of China, the growth rate is quite high," said Yu, director of macroeconomic research for the Development Research Center.

In any case, opportunities in the traditional powerhouses of China's economy appear to have dried up.

"A lot of people want to go work in big cities, but there is far less demand this year," said a manager at the Tongxu County Enterprise Bureau, an employment service in the central city of Kaifeng in Henan province. He refused to give his name.

"A lot of workers from big cities are starting to return home because their employers can't pay their salaries," the man said.

Beijing is pinning its hopes on investment, especially by state industry, to drive a rebound. Premier Wen Jiabao said this week that sustaining investment was most important at this point an acknowledgement that efforts to boost consumption and exports are failing to gain traction.

State industry has been sustained and even expanded by credit from government banks. Two major steel producers have received permission to build a pair of mills costing a total of more than $20 billion, financed by state-owned lenders. Wen has promised more credit to private businesses but entrepreneurs say they get little help.

Facing weak export orders, manufacturers are cutting payrolls and reducing purchases of components and raw materials. Import growth in June fell by half from the May level to 6.3 percent, reflecting low industrial and consumer demand.

With trade plunging, Chinese shipyards have been battered because shippers are putting off purchases of new vessels. The industry employs hundreds of thousands of workers and is the world's biggest by total tonnage produced.

Orders for new vessels fell by half in May from a year earlier, according to the China Shipbuilding Association. A spokesman who would give only his surname, Qian, said shipyards have been forced to cut prices by 20 to 40 percent.

Major shipyards in Shanghai, the industry center, say they are still profitable but news reports say smaller yards in surrounding provinces have laid off employees or closed.

"I'm sure some companies may face suspension of production or even closure," Qian said.




===========================================


Krinvanto Vishwam Aryam
(Make this World Noble)

- Rigveda


-------------------------------------------
india .. .incredibly stupid idiot and weak .. tatatatatatat
Quote
Like
Share