Barclays expects the worst may be over for the Chinese economy within the next month.
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If Beijing dislikes anything, it is sudden moves which may cause whiplash for the Chinese economy.
The really interesting thing here, however, is surely the outlook for the Chinese economy.
In the short-term, a labor shortage is bad news for the Chinese economy, for two reasons.
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Another Milestone for the Chinese Economy by Addison Wiggin originally appeared in the Daily Reckoning. day.
In the long-term, a labor shortage is good news for the Chinese economy, as it will induce Chinese companies to innovate.
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Overall, the recent policy shift by China to appreciate the renminbi will transform what were tailwinds into headwinds for the Chinese economy.
The bottom line: Labor shortages may be bad for the Chinese economy in the short-run, but they are good for the long-run.
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Influencing all of the price projection is the outlook for the Chinese economy and its steel industry which has all but stopped expanding.
This sorry state of affairs obviously has repercussions for the Chinese economy and following on is a risk to the level of global growth.
"We consider the informal lending market the most likely short-term time bomb for the Chinese economy, " Dong Tao, Asia economist at Credit Suisse, said in a recent report.
It was the worst performing quarter in three years, and had the hard landing callers coming out of the wood work to proclaim the beginning of the end for the Chinese economy.
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The CPI rise was mostly propelled by a continuing increase in food prices (up 14.8 percent), and pork prices in particular (up 57 percent), which is both bad news and good news for the Chinese economy.
Do they represent the next major challenge for the U.S. and a new corporate form that poses a major threat to the survival of U.S. corporations or, as in the case of Japan, is this a flash in the pan that will in due course also implode with devastating consequences for the Chinese economy?
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And if that trajectory indicates that over the course of a year the RMB has appreciated a certain amount that is more in line in economic fundamentals, then I -- hopefully not only will that be good for the U.S. economy, that will also be good for the Chinese economy and the world economy.
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Were it not for the buoyant Chinese economy, the outlook for many countries in the region would be even less encouraging.
For instance, just about everyone agrees that strong central guidance has been the most important factor responsible for the spectacular rise of the Chinese economy.
The essential problem for the Chinese government is that the economy is now hostage to events beyond its borders.
Predicting the Chinese economy for just the next year is for chumps.
For example, for years, the Chinese economy has been heavily dependent on investment and exports.
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So we believe strongly and I think the Chinese believe that an arms race either in the Middle East or an international arms race is in no way in their interests, particularly -- we certainly know that -- for what drives the Chinese economy, energy is a big part of it.
Much of its success in recent years has been due to exports, and Beijing's initial response to shrinking consumer demand around the world has been to boost this critical sector, which now accounts for about 38% of the Chinese economy, by direct and indirect measures.
That said, my own guess is that copper and oil, both in high demand for building and running the Chinese economy are safer bets to commit money.
This is all happening at a time when the rest of the world is looking to the Chinese consumer as the last hope for the global economy.
Barclays , for instance, now believes the Chinese economy will grow 7.8% this year.
For equity investors, the growing Chinese economy has been the main draw, helping spur rallies throughout the region this year.
Many newspapers and news portals including Hong Kong's Ta Kung Pao carry a People's Daily editorial condemning international agencies for their gloomy forecasts on the Chinese economy.
As a result, exports, which account for about 31% of the Chinese economy and support 200 million jobs according to the World Bank, are unlikely to create substantial growth in either the short or medium term.
"It's good news for the U.S. economy and for U.S. manufacturing because Chinese companies are keen to capitalized made in the U.S. brands, " Hanemann said.
The RMB has been selling off lately as local Chinese see a grim forecast for the global economy.
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