Archive for January, 2009

Happy Chinese New Year!

Friday, January 23rd, 2009

Happy Chinese New Year to all our readers! The Year of the Ox is looking like a long hard slog, but next week will be full of celebrations and banquets anyway… Against a rather sad economic backdrop, AP notes that: “Like the celebration of Christmas in many western countries, the weeklong Lunar New Year holiday […]

A Dose of Medicine for Slowing GDP

Friday, January 23rd, 2009

As the global slowdown continues, China (in contrast to the recent upward restatement for 2007) is showing signs of slowing – in the last quarter of 2008 GDP growth was 6.8%, which is slow by recent Chinese standards. MarketWatch reports: “Gross domestic product expanded 6.8% in the October-to-December period, compared to a year ago, easing […]

All Change As Companies Adap to the Downturn

Friday, January 23rd, 2009

While the slowdown starts to bite, news of foreign companies adapting to changing conditions is starting to roll in – whether in retail, IT or coffee, things are being shaken up. The Wall Street Journal reports that: “…French retailer Carrefour SA is touting discounts on everything from food to wine to appliances. It says the […]

FDI: The Rise & Fall (& Policy)

Thursday, January 15th, 2009

Two headlines to consider: 1. “Foreign direct investment in China rises 23.6% in 2008” (MarketWatch) 2. “Foreign Direct Investment in China Falls 5.7 Percent” (Bloomberg) Of course they are talking about different timeframes, but it is clear from the text that the FDI environment is on the turn. MarketWatch notes: “China’s foreign direct investment rose […]

A (2007) GDP Restatement & A Bumpy Future.

Thursday, January 15th, 2009

Back in 2007 we reported on how China restated its 2006 GDP figures, and suggested that statistics be treated with caution. Now Xinhua has just reported another revision, this time for the 2007 GDP figure: “The National Bureau of Statistics released a revised growth rate for 2007’s gross domestic product. It went from 11.9 percent […]

Risky Times (For Payment)

Thursday, January 15th, 2009

As companies suffer from slowing sales, growing inventories, and failing clients and suppliers, payment risks are at the front of many people’s minds. But it is no longer eager foreign companies that are worried about getting paid by Chinese counterparts. The credit crunch has put the shoe on the other foot, as AFP has recently […]

A Silver (Trade) Lining on the (Economic) Cloud

Thursday, January 15th, 2009

It may be little comfort to our friends in the US, but the latest trade data, reported by Bloomberg, shows that : “The U.S. trade deficit narrowed in November by the most in 12 years as tumbling oil prices and slumping consumer spending cut imports. The gap shrank 29 percent, more than forecast, to $40.4 […]