MercoPress. South Atlantic News Agency
China's manufacturing misses expectations in August; stimulus considered
China's manufacturing activity missed expectations in August, indicating that the country's economy may be losing momentum and require more stimulus. The official purchasing managers index (PMI) fell to 51.1 for the first time in seven months from 51.7 in July, the National Bureau of Statistics said. Read full article
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Disclaimer & comment rulesPerhaps if Europe stops all imports from China the like of Italy etc. will be able to make and build things for European consumers and undercut china,
Sep 01st, 2014 - 06:48 pm - Link - Report abuse 0just a silly thought..
Haven't you heard, Italy is on perpetual holiday, it is the Latin temperment. They have so many days off celebrating someone in the past history. Brazil is in recession because of the World Cup ( too many days off )
Sep 01st, 2014 - 09:49 pm - Link - Report abuse 0China is undergoing a very deep purge of curruption and a shift from a export dependent country towards a couuntry whith a much larger share of its domestic market absorbiing production. They can be the worlds first superpower or the whole thing can come down on them like a house of cards
Sep 01st, 2014 - 10:33 pm - Link - Report abuse 0The world's first superpower?
Sep 01st, 2014 - 11:00 pm - Link - Report abuse 0No, not the first. And doubtful even the next. A superpower is more than just economic size.
Any stimulus in China will not have the impact they once did. It is taking more and more money for every yuan in return.
China rode its demographic dividend and labour arbitrage to the max and saw amazing growth. However its demographic dividend is now finished. It has had a shrinking labour force for the past 2-3 years and so it has almost lost its labour arbitrage advantage.
China can shift to domestic consumption as opposed to export lead growth, however this will only last so long as it is facing an overall population decline beginning in less than a decade.
China will be a big economy and a world power, but not a superpower.
Its population decline is on a worse trajectory than Japan's was 20 years ago. China will shift its focus inwards more and more just as Japan did and Japan had first world/developed infrastructure already in place.
Just out of interest,
Sep 02nd, 2014 - 12:01 am - Link - Report abuse 0did one read that Russia and China conducting joint military exercises to take and hold the south china seas, and other training in that part of the world,
perhaps either Putin thinks Europe aint got the time or energy to stop him,
or he and china have other fish to contain in the pacific.??
just saying like.
4.
Sep 02nd, 2014 - 12:30 am - Link - Report abuse 0Dont underestimate Chinese leadership. They are not politically correct lawyers like in the West. They rather have a far more pragmatic aproach to things.`You steal, you geet a bullet in your brains, no matter if you are a senior communist member or not.
CabezaDura
Sep 02nd, 2014 - 03:00 am - Link - Report abuse 0I don't underestimate the Chinese leadership. However not even they can't force people to breed. They can do everything they want to reduce corruption, reform the economy and even start wars but stability and wealth always lead to lower birth rates. So China's goals of stability and wealth are having the effect.
China's population keeps defying optimistic predictions and coming in lower or worse than estimated. The UN's Low Variant has China's population shrinking to 500 million in 86 years. That's a drop of 900 million. No society could attain superpowerdom while dealing with that.
And it has already started.
I dont really think that we are dealing with the same thing here for Japan was a developed country by the 1980s, China is a developing country with vast manpower to uphold the economy.
Sep 02nd, 2014 - 03:25 am - Link - Report abuse 0The funny and fascinating thing with China is that it is a beehive civilization. Old people live much shorter in China so I dont know if old age will be having the same kind of effects like it does in western economies.
Oh earlier this year spats?? Turns out I was right after all the World Bank already stated accepted that China was the first world economy as of December this year (3 months time) Its the Chinese statistics bureau and chinese gov't that decline to be considered as number 1 economy because it would mean having to assume many third world development contributions in the UN, and commitments in international security and global warming.
http://www.lanacion.com.ar/1689558-la-potencia-reacia-china-crece-y-crece-pero-dice-no-a-la-idea-de-su-supremacia
As USA companies move more and more mfg back into the USA from China it will mess up their trade balance and mfg output. It is no longer cheaper to mfg in China than the USA since we pay so little for fuel.
Sep 02nd, 2014 - 12:11 pm - Link - Report abuse 0Its already started happening and it will accelerate.
China will fail moving to a middle income economy. They have serious banking problems. I think they've also lost the ability to move thier markets like they used to.
They'll never be a super power.
They're still a very poor country with 200MM living on about U$1/day.
Give it a decade, if they don't end up in a revolution I'll be very surprised.
@ 9 yankeeboy
Sep 02nd, 2014 - 09:25 pm - Link - Report abuse 0It is clear that the fear of revolution is what drives the top people in china.
Hong Kong are getting themselves in a lather about not being able to have a local guy in overall control for the 2017 change point.
The Chinese government have already warned HK that they face “stern measures” if they keep on with this move toward total rule for themselves. I imagine how this works out or not is going to set the seal for the future for all of China.
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