China Business News 2021





China Economy Growth 2024

October 2024
The Chinese national statistics office reported on October 18, 2024 that the Chinese economy grew by 4.6% in the third quarter of 2024 compared to the same quarter in 2023.
The growth is higher than the forecasts of a 4.5% growth.
The growth in the third quarter is still low compared to the growth of 4.7% in the second quarter of 2024.
Economist hope that China will be able to reach its target of 5% growth in 2024.

China Economy 2024

September 2024
The Chinese central bank revealed on September 24, 2024 its biggest stimulus since the beginning of the last pandemic.
The stimulus results from forecasts that the Chinese economy will not reach the growth estimated target of 5% for 2024.
The stimulus includes cuts in the banks" reserves requirements by 0.5 basis points allowing about 142 billion dollars for new loans.
In addition the seven days loan interest was cut by 0.2% to 1.5%.

China Inflation 2023

July 2023
Beijing has set a target for average consumer inflation in 2023 of about 3%.
Prices rose 2% year-on-year in 2022.
China last month cut policy rates to boost liquidity and vowed to take measures to promote household consumption.

China Inflation

July 2022
The Chinese statistics office reported on July 9, 2022 that the inflation rate in June 2022 was the highest in the last year, 2.5% on annual basis compared to 2.1% in May 2022.
The inflation rate in China is still within the government goal being far below the inflation in Europe and the U.S.A.

China Economy Growth

July 2021
The Chinese economy grew in the second quarter of 2021 by 7.9% on annual basis.
In the first half of 2021 the Chinese economy grew by 12.7% compared to the same period in 2020. July 2021.

China Economy Growth 2020

January 2021
The Chinese statistics office reported on January 18,2021 that the growth in 2020 was 2.3%, probably the only global big economy with a positive growth in that year.
In the last quarter of 2020 the Chinese economy grew by 6.5% compared to the same quarter in 2019 and by 4.9% compared to third quarter of 2020, a growth higher than the prior forecasts.

China GDP Shrink

April 2020
According to official data released on April 17, 2020 the Chinese economy shrank in the first quarter of 2020 by 6.8%, the first shrink since 1992.
In the last quarter of 2019 the economy grew by 6%.

China Growth 2020

February 2020
The economists of the credit rating agency S&P published on February 8, 2020 their forecast. Due to the corona virus crisis S& P expects that the Chinese GDP will grow by 5% in 2020 compared to prior forecast of 5.7%.
The agency assumes that the virus crisis will end by March 2020.For 2021 the growth forecast is 6.4%.

China 2020 Growth Forecast

December 2019
According to a meeting held this month China expects an economic growth of only 6% in 2020, compared to an expected growth of 6%-6.5% in 2019.
The Chinese government plans to intensify in 2020 investments in infrastructure and issue special $430 billion debentures by local authorities.

China Currency Devaluation

August 2019
China devaluated its yuan currency on August 5, 2019 by 1.4%, dropping the Chinese currency for the first time in a decade below 7 yuan per dollar.
The move comes as a retaliation to U.S.'s decision to impose new taxes on trade with China.



China GDP Growth

July 2019
The Chinese GDP grew in the second quarter of 2019 by only 6.2%, the lowest growth in the last 27 years.
Preliminary estimates were a growth of 6.3% following a growth of 6.4% in the first quarter of 2019.

U.S.A. Banns China Mobile

May 2019
The U.S. FCC, federal communications committee, decided on May 9, 2019 to ban China Mobile from offering telecommunications services to the U.S. market.
The Chinese company is owned indirectly by the Chinese government ,thus causing worry in the U.S. that the company may be a security risk.

China GDP Growth

April 2019
The Chinese statistics office reported on April 17, 2019 that the GDP growth in the first quarter of 2019 was 6.4% compared to preliminary estimates of only 6.3%.
The current growth is still the lowest in the last 20 years.
For comparison the growth in the first quarter of 2018 was 6.8%.

China U.S.A. Trade War

July 2018
China announced on July 6, 2018 imposing customs tariffs on import from the U.S.A. totaling up to 34 billion dollars, same amount as U.S.A.'s 25% tariffs on imports from China.
Last year China's export to the U.S.A. was 4% of its GDP while U.S.A.'s export to China reached only 0.7% of the U.S.A. GDP.

China GDP

July 2017
The Chinese national bureau of statistics reported on July 17, 2017 that the economy expanded in the second quarter of 2017 at an annual rate of 6.9%, same as in the first quarter.
The 6.9% rise is higher than preliminary forecasts by analysts of 6.8% rise.

China Credit Rating Downgrade

May 2017
Moody's credit rating agency downgraded on May 24. 2017 China's credit rating from Aa3 to A1.
The downgrade reflects concern about the slowing economy and growing national debt.
The agency raised China's outlook from negative to stable.
The credit rating by other rating agencies is AA by S&P and A+ by Fitch.

China Interest Cut

August 2015
The Chinese central bank cut on August 25, 2015 the annual loan interest rate by 0.25% to 4.65%. The interest rate cut by the central bank is the fifth cut since November 2014.
The bank also cut the ratio for cash reserves of the banks.
The new measures are aimed to increase the credit terms of the Chinese economy.

China Becomes the Biggest Economy

December 2014
According to a release by the IMF China is now the world biggest economy surpassing the US.
The IMF estimates that China's GDP is $17.6tn compared to the US 17.4tn.
While in terms of GDP per person the US is about four times higher than China in terms of PPP, purchasing power parity, China takes the lead.

China Interest Rate Cut

November 2014
The Chinese central bank cut on November 21, 2014 its one year loan rate by 0.4% down to 5.6%.
The one year deposit rate was cut by 0.25% to 2.75%, The loan rate cut is the first cut since July 2012.
The new reduced interest rate will help businesses to get cheaper loans.

China Stock Market Update

November 2014
The Chinese authorities announced on November 10, 2014 that next week the Hong Kong stock exchange will be lined to Shanghai stock exchange.
The effect of the new decision is that purchase of Chinese stocks, estimated at Dollar 4.2 trillion, will be now allowed to foreign investors.
Before the new decision such purchase was forbidden for foreigners.

China Switzerland FTA

June 2014
The free trade agreement, FTA, which was signed between the two countries on July 6, 2013 will enter into force on July 1, 2014.
In 2013 China was the largest buyer of Swiss industrial products in Asia.
The FTA will strengthen the position of Switzerland as a central business location.

China PMI October Increase

November 2012
The manufacturing managers index, PMI, increased in October 2012 to 50.2 points compared to 49.8 points in September and 49.2 points in August.
The new PMI which exceeds 50 points is pointing to intensified activity of the Chinese economy.

China PMI Decrease

September 2012
The Chinese manufacturing purchasing managers index, PMI, fell in August 2012 to 49.2 points compared to 50.1 points in July 2012, the lowest index in the last nine months and the first time since November 2011 of an index below 50 points.
In general an index below 50 points to a possible contraction in the manufacturing activity.

China's New Interest Rate Cut

July 2012
The Chinese central bank surprised on July 5 , 2012 by deciding to cut the interest rate for the second time within one month.
The interest on deposits was cut by 0.25% down to 3.0% while the lending rate was cut by 0.31% down to 6.0%.
The new interest cut is aimed to further boost the Chinese economy growth.

China's 0.25% Interest Cut

June 2012
The Chinese central bank cut on June7 , 2012 the Chinese one year lending rate by 0.25% down to 6.31%.
The dramatic cut which is the first since 2008 is aimed to boost China's economic growth.



China's 4.5% Inflation Rate

February 2012
According to the Chinese National Bureau of Statistics the annual inflation in China accelerated to 4.5% in January 2012 compared to 4.1% in December and well above the analysts' forecast of 4.0%.
The hike follows five months of steadily easing rates following the 6.5% peak in July.

Fitch May Downgrade China's Rating

September 2011
Fitch credit rating agency warned on September 8 that it may downgrade China's yuan debt rating from the current AA- within two years.
The warning follows worry regarding bad loans after record sums which were lent by Chinese banks in the last two years.
Fitch downgraded in April 2011 China's long term local currency debt outlook from stable to negative.

Chinese Reserve Ratio 0.5% Rise

June 2011
The Chinese central bank decided to raise the banks' reserve ratio by 0.5% to 21.5%.
The rise, effective June 20 is the sixth rise this year.
The new decision is aimed to lower the volume of bank loans following concerns of the 5.5% May inflation, the highest in the last three years.

China's Interest Rate Rise

April 2011
The Chinese central bank raised on April 6 the interest lending rate for one year from the previous 6.03% rate to 6.31%.
The one year deposit interest increased from 3% to 3.25%.
The current rise, which is the forth rise in about six months is aimed to cool the rising inflation which increased by 4.9% in February, higher than the bank's forecast of 4%.

China Credit Rating Upgraded

November 2010
Moody's, one of the world biggest rating agencies, upgraded on November 11, 2010 China's government bond rating from A1 to Aa3 with a positive outlook.
Following China's GDP growth of 9.6% in the 3rd quarter compared to the same quarter in 2009 Moody's expects a 9%-10% growth of the Chinese economy in 2010 and a growth of 8%-9% in 2011.

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