Chaina's Econimic Growth

[andy003]

China’s economy to improve in second quarter enhanced by increasing investment and a slower decline in exports, a leading government economist remarks on Friday.

According to latest Forex updates the annual growth in GDP slows down in the first quarter from 6.8% to 6.1%, but economists said this marked a development in sequential, quarter-on-quarter increase.

This trend will continue, according to Zhang Liqun an economist with the Development Research Centre, a think tank under the China’s cabinet, the State Council, as demand and supply come into balance.

In March export declined by 17.1% from earlier year, improving from 25.7% decrease recorded in February. Zhang said that he expected exports for all of 2009 to reduce 10-15%.

The pace of investment, which rose up sharply in the first quarter will continue to gather momentum all through the year, Zhang said, without giving any estimate.

Fixed-asset investment expanded 28.8% in the first three months as compared with past years as the first stage of Beijing’s 4 trillion Yuan ($585 billion) stimulus planned break down.

The economist said that he expected a development in overall domestic demand, determined in part by real estate markets.

[Pinalli]

The Chinese are making moves to dismantle the Dollars standing, in an article in the Wall Street Journal this weekend, it was revealed that “China has already canceled America's credit card” as a US senator put it.

As China is the leader in US debt holdings, 800 Billion Dollars worth of bonds and another 2 Trillion in Treasury Notes and Bills, it seems as if China’s concern over rampant US spending has taken its toll on the way China conducts business. Last month I told you in Forex Online land that China was beginning to amass large reserves of Copper and Aluminum. With a building sector down to near zero production right now, I am sure they are not stockpiling these metals for the future. They are converting their cold hard American debt to tangible assets.