Industrial production in China rose by 9,7%
Chinese Economy is still growing... the industrial production rose slightly more than expected in July in China, 9.7%, while the increase in retail sales, 13.2%, slightly below expectations, according to official data released Friday. Economists had expected 9.0% and 13.5% respectively.
Investment in China
The investment in fixed assets, an important engine of the economy, rose 20.1% in the first seven months of the year, against a consensus of 20.0%. The consumer prices rose 2.7% in July as in June, but those at the factory gates fell further and for the seventeenth consecutive month, suggesting an unchanged monetary policy while Beijing task to counter a slowdown at work for over two years. The producer prices fell 2.3% from a year ago, against a decline of 2.7%.Economists on average had expected a rise of 2.8% in consumer prices and a 2.2% decline in producer prices.
"I remain in favor of a rate cut to help businesses in a context of persistent deflation in producer prices," said Chen an economist for China at Mizuho Securities.
"But the central bank has a very orthodox line on inflation (...) and she is concerned that a rate cut be interpreted by financial market participants as a sign of economic recovery"
source industrie-special.blogspot.com/
http://china-market-research.blogspot.com
A low weight industry
RépondreSupprimerGlobalization is not inherently bad, but uncontrolled, it is harmful. France pays dearly for it. Industry represented 25% of GDP in the late 1970s, now barely 10%. The European average is 20%, Germany is 27% ... The recent promotion of Made In France, in addition to its communication success, does not really change the situation. Riding on the Coronavirus crisis, Bruno le Maire took the opportunity to emphasize the need to "relocate the industry".
It evokes a real strategic reorientation in order to limit French and European dependence. He cites three sensitive sectors: medicines (90% of the active ingredients of which are produced outside the European Union), the electric automobile (for which Europe is just starting to deploy factories), or even aeronautics ( whose main suppliers are in China)… To this we could add electronics and IT.
Technological and industrial sovereignty is a prerequisite for political sovereignty, assures the French minister. While this relocation was a matter of choice until then, the coronavirus made it an obligation. The epidemic risk, which will increase in the future, like the climate risk, becomes a physical risk for the survival of companies too dependent on distant supply chains that in reality they no longer really control.