The US will not launch an investigation into allegations that value of China’s currency acts as a form of export subsidy. Countervailing duties had been called for on imports of Chinese-made aluminum and paper products, but the US Commerce Department said the “two allegations before it that China’s currency practices constitute an unfair subsidy under US [...]
China’s official Purchasing Managers’ Index (PMI) climbed to 51.7 in August from 51.2 in July – the lowest growth since February 2009 – supported largely by seasonal factors. A figure above 50 reflects growth, but Citigroup said August’s PMI reading is typically higher than July’s. Domestic economic expansion has been retarded by a weak global recovery, [...]
Japan and China squared off over the wage rates paid by Japanese companies in China at a recent economic forum. Premier Wen Jiabao told the Japanese delegation to the meeting that Japanese companies should pay higher salaries to their Chinese workers. Earlier, Japanese Foreign Minister Katsuya Okada called for “transparent policies” governing workers in China, [...]
Xia Bin, an academic adviser to the People’s Bank of China, told a weekend forum in Shanghai that Beijing will maintain its current mixture of monetary and fiscal policies despite moderating economic growth and slowing property price growth. Following the introduction of cooling measures targeting property starting in April, housing transactions have slumped over the [...]
Taiwan’s parliament has approved a trade pact with the mainland that will reduce tariffs on hundreds of products and deepen economic ties between the two sides. Even though opposition lawmakers argued against the Economic Cooperation Framework Agreement (ECFA) – claiming that it will take away local low-income jobs and that it supports Beijing’s political aim [...]
China’s holdings of South Korean debt have more than doubled this year as Beijing continues to diversify away from the US dollar. Korean Treasury bonds held by Chinese investors rose 111% to $3.4 billion in the first half, according to Seoul-based Financial Supervisory Service. The spike in demand has led to the longest rally in [...]
Foreign Direct Investment (FDI) in China reached $6.92 billion in July, up 26.2% year-on-year but significantly lower than the $12.5 billion recorded for June. It comes after fixed-asset investment and industrial production both slowed in July, while international data pointed to a slowdown in the global economy. Economists played down the significance of the fluctuation. [...]
China’s US Treasury holdings fell for the second month in a row in June. According to the Treasury Department’s monthly report on debt holdings, China reduced its exposure by $24 billion to $843.7 billion, a decline of 2.7%. Total holdings of Treasury securities rose $45.6 billion to $4 trillion. China remains America’s largest creditor, although [...]
The Chinese renminbi posted its largest decline in seven weeks on speculation that Beijing is preparing to counter appreciation on concerns about the domestic economy. Beijing is concerned about macroeconomic data that show growth in industrial output slowing in July. The decision is also likely due in part to the recent appreciation of the dollar’s [...]
China’s trade surplus rose to $28.73 billion in July as exports rose 38.1% year-on-year and imports grew 22.7%. The surplus, the largest since January 2009, compares with a $20 billion surplus in June and a $10.63 billion surplus in July last year. The rise in exports was lower than the 43.9% increase recorded in June. [...]
