InfoAnda - China's new reality: Economic boom is slowing

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Democratic Senator Seeks Ending Senate Appointments By Governors | 27 January 2009
Nehru's great-grandson arrested over Muslim hate speech | International | | 29 March 2009
Bill Clinton among the stars at Vienna AIDS ball | 18 July 2010

Competency hearing begins in Elizabeth Smart case | 1 December 2009

">Forum Views () ">Forum Replies ()

Read more with google mobile : China's new reality: Economic boom is slowing

Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Secondary Navigation Singapore Asia Pacific World Search Search: China's new reality: Economic boom is slowing By ELAINE KURTENBACH,AP Business Writer AP - 2 hours 28 minutes ago SHANGHAI, China - Job cuts, factory closures, unpaid export shipments _ stalling worldwide demand for products made-in-China is driving home a new economic reality for businesses that until recently were struggling to keep up with soaring exports. China's economy is still growing at an enviable rate: It expanded 9 percent in the quarter through September. But that was the slowest in 5 years and down from 11.9 percent last year. Forecasts for next year range as low as 7.5 percent. "The Golden Years have shuddered to a dramatic halt and much tougher times are upon us," Stephen Green, economist at Standard Chartered Bank in Shanghai says, pointing to slowing exports and investment. The suddenness and severity of the chill from the global slowdown prompted leaders to announce late Sunday a $586 billion economic stimulus package aimed at boosting growth in China's own markets. "This broad-based fiscal stimulus program will emerge as the government's front line of defense against an excessive economic slowdown," Jing Ulrich, J.P. Morgan & Co.'s chairwoman for China, said in a note to clients. But it's unclear whether the package will be enough to salvage exporters left high and dry by overseas customers who are either canceling or abandoning orders as they face what might be one of the bleakest Christmas shopping seasons in decades. For apparel maker Yiwu Bangjie, the first sign of trouble came with the failure of a longtime American customer to pick up and pay for its latest shipment of seamless underwear, says Tao Jianwei, the company's general manager. "After the shipment arrived at the U.S. port, when we notified our customer to take delivery and finish paying, their reply was that they had no money to pay for the goods," said Tao, whose company is based in eastern China's Zhejiang province. Yiwu Bangjie is one of the luckier casualties of the slowdown. Tao, who would not identify his U.S. customer, said he expects to get 90 percent of the $100,000 due back through export credit insurance. "We're lucky to have that insurance," he said. "Everyone knows the global economy is headed for recession, so it's best to be cautious." Others have suffered far more. Thousands of factories have closed, especially those in labor-intensive industries such as toys and shoes. Official statistics on bankruptcies and factory closures are sketchy. However, the economic planning agency reports that 67,000 small- and medium-sized companies closed down in the first half of the year. In the months since, conditions have deteriorated, with nearly daily reports of factory closings and layoffs. Among the most recent, BEP International Holdings, a home appliance maker that employed about 1,700 people, according to its Web site, suddenly stopped operations Oct. 20 in the southern city of Shenzhen. "It is difficult for the company to obtain bank financing and other sources of financing," the company said in an announcement to the Hong Kong Stock Exchange. As growing numbers of companies close or slash production due to sinking sales, that in turn affects shippers who bring in raw materials and export finished goods. The Baltic Dry Index, which measures drybulk shipping rates on 40 routes across the world and is a key indicator of demand, has declined more than 11-fold, to 891 in early November from 11,793 points in May. "The reality we have to face is that the slowdown of the global economy is hitting us hard," said Ken Wong, manager of a Shanghai-based shipping agency whose profit has shrunk 30 percent this year. Since many overseas customers are now unable or unwilling to pay as promised, factories have to be doubly cautious about whom they do business with, said Chen Tong, general manager of Fuzhou Xinrong Trading Co., a maker of carved wooden boxes. "If the order exceeds 100,000 yuan ($14,600), we're going to be checking a company's background and market," she said recently, surrounded by boxes decorated with images of Santa Claus, Christian saints and the Virgin Mary at her booth at a trade fair in Guangzhou. "You've got to do that now to be safe." China's Ministry of Commerce estimates that cash-strapped U.S. businesses alone owe Chinese exporters $100 billion on unpaid orders. The problem, which first cropped up in construction related areas, has spread to consumer products, clothing, shoes and appliances, it says. As the world's appetite for China's products wanes, the effects are reverberating through the economy _ and beyond its borders. Increasingly, Chinese orders for iron ore, scrap metal and other commodities are being abandoned as buyers find themselves unable to get letters of credit or other financing to pay for the shipments, which end up sitting on the docks of Chinese ports. Meanwhile, the losses are trickling down to white collar workers who are cutting back on spending as they fret over job security, and to migrant workers, who have begun heading back to rural areas as factories and construction projects shut down. To boost growth, Beijing has slashed interest rates three times in two months in addition to the hundreds of billions of dollars it has promised in tax breaks, credit guarantees, new construction projects and other measures. Still, the abrupt slowdown, just weeks after Beijing staged a triumphant Olympic Games, has left many Chinese wondering if their country's economic "miracle" was perhaps more a mirage. "The good times seem to be over," said Pan Henfei, a tall, robust man in his 30s who gathers paper and bottles for recycling in Shanghai, China's bustling financial capital. As offices cut back on newspaper subscriptions and supplies, there's less for him to scavenge. And, he complains, the price he gets for paper has dropped 40 percent to 1 yuan a kilogram, or about 6 cents a pound. "I'm just a poor migrant trying to make it in the big city so that my child might be able to get out of the village," said Pan, the paper recycler. "Now some of my friends from the countryside are thinking of giving up this work and going back home. At least we can still do some farming." ___ Associated Press Writer Bill Foreman in Guangzhou and Associated Press researchers Ji Chen in Shanghai and Bonnie Cao in Beijing contributed to this report. Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: China's Economy Australian PM pledges to never abandon auto industryAFP - 1 hour 6 minutes ago Australian central bank lowers growth estimatesAFP - 1 hour 33 minutes ago Seoul shares up; industrials jump, carmakers fallReuters - 1 hour 37 minutes ago France, Australia ministers in talks on financial crisisAFP - 1 hour 46 minutes ago Related Articles: Business China regulator urges banks to bolster risk controlsReuters - 44 minutes ago Australia's central bank slashes growth forecastsAP - 46 minutes ago France, Australia ministers meet to boost tiesAFP - 49 minutes ago Indian shares up more than 3 pct as sentiment liftsReuters - 50 minutes ago China's economy to grow 8-9 percent in '09: central bank chiefAFP - 52 minutes ago Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed Documents expose Prince William RAF training row: report G20 pledges 'all necessary steps' to restore stability In Obama's victory, Americans see legacy of Lincoln Porsche hits record results on the back of VW shares Obama: First pooch may be mutt 'like me' View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology

Other News on Sunday, 9 November 2008
Canadian kept in a hole in the ground in Afghanistan
Two Spanish soldiers killed in Afghanistan: defence ministry
Israelis, Palestinians want support for peace talks | International |
Southern African leaders start summit on Zimbabwe | International |
Iranian economists criticize Ahmadinejad
South Ossetian forces occupy Georgian village: Tbilisi | International |
Egypt sends bin Laden's wandering son to Qatar | International |
Iran speaker criticizes Obama's nuclear remarks | International |
Reminisces of old Baghdad by one of last Jews | International |
Hurricane Paloma weakens further to Category One
China announces $586 billion stimulus plan
NZ house prices continue to decline in year to Oct
Taiwan central bank cuts interest rates by 25 bps
Saudi Aramco says on track for 12 mbpd capacity
Quartet pushes Israel, Palestinians to stick to peace talks
Bin Laden's son in Qatar after being deported by Egypt
Bomb attacks kill 8, wound dozens across Iraq
AP IMPACT: After US goes, Iraqi city faces vacuum
In Obama's victory, Americans see legacy of Lincoln
AIDS vaccines: New hope for problem-plagued path
G20 pledges 'all necessary steps' to restore stability
Air strike killed 37 Afghan civilians | International |
G20 agreed on need for world finance reform: EU ministers
Two Spanish soldiers killed in Afghan suicide attack
Zimbabwe's opposition MDC rejects SADC demands | International |
Russian submarine accident kills 20
Nigerian militants say four hostages released | International |
Deutsche Post to shed thousands of US jobs
S.Africa pressures Zimbabwe on unity deal
Won sets back South Koreans' overseas education plans | International |
MP3 player headphones may hinder pacemakers: study | Technology |
Obama could reverse Bush orders on drilling, stem cells
South West residents reduce carbon footprint by using energy trackers
Intel to unveil new health-care system: report | Technology |
Lockerbie families begin getting funds
RPT-NZ house prices continue to decline in year to Oct
Syrian president criticizes proposed US-Iraq pact
Cartoon critters, James Bond draw moviegoers | Entertainment |
Nicole Kidman to play transsexual in period drama | Entertainment |
Coldplay 2008's biggest act at World Music Awards | Entertainment |
Sly Stallone casting ugly guys for next movie | Entertainment |
Hollywood paparazzo pioneer says he has no regrets | Entertainment |
Director Brett Ratner circles Conan remake | Entertainment |
Seven killed, scores wounded in Baghdad bomb attack
Indonesia handling of Bali executions questioned | International |
World marks 90th anniversary of Great War
MP3 headphones can hamper defibrillators, pacemakers
Canada won't extend Afghan commitment, minister says | International |
Baghdad double bombing kills 25: police | International |
China says no compromising on Tibet's future | International |
Safety-wary China officials cancel Taiwan trips: KMT | International |
Strong quake hits China's Qinghai region | International |
US military conducts a dozen secret strikes in four years: report
Maldives saves for new homeland amid flooding fears: report
Obama prepares for White House handover talks with Bush
Dell not to launch music player before holidays: report | Technology |
China's economy to grow 8-9 percent in '09: central bank chief
Report: US conducted secret ops in Pakistan, Syria
Japan's quarterly machinery orders drop sharply
Seoul shares up; industrials jump, carmakers fall
Investors cheer China's stimulus package
World oil prices up on OPEC chief's remarks
China's new reality: Economic boom is slowing
NZ dollar up on stocks, Chinese package; bonds soft
World oil prices up on OPEC chief's remarks
US govt near deal to review AIG rescue package: report
S.Korea further delays power price hikes
G20 opens door to smaller economies in crisis talks
South African singer Miriam Makeba dies in Italy | Entertainment |
Markets cheer Chinese investment plan
Country star Merle Haggard battling lung cancer | Entertainment |
Who's L.A. concert hits some rough patches | Entertainment |
Hollywood paparazzo pioneer says he has no regrets | Entertainment |
YouTube to post full-length MGM films | Entertainment |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01