Archive for the ‘savings’ Category

Despite Global Economy Downturn, China Still Lending

March 8, 2009

Optimistic official comments from China’s annual legislative meeting are highlighting the country’s differences with major Western economies caught in the worsening financial crisis.

By Andrew Batson
The Wall Street Journal
.
China’s economy hasn’t turned the corner into recovery — housing sales, construction and manufacturing continue to contract, and the worst is almost certainly still to come for exporters hammered by downturns in U.S. and European demand, with February trade figures next week expected to show a sharp decline.

But while financial systems sag in many countries, Chinese banks — state-run, stodgy and opaque though they may be — continue to pump money through the economy. Along with flush household savings and solid corporate balance sheets, that is sparing China from the liquidity crunch and credit collapse savaging other nations.

“The effect of this financial crisis on China is different than its effect on Western developed countries,” Zhang Ping, the head of China’s economic planning agency, said at a news conference on Friday. “For us the biggest impact has been on the real economy, while in the West there has been a major impact on the financial system.”

“It’s just one crisis, not two” for China, said Ben Simpfendorfer, an economist for Royal Bank of Scotland. Because they don’t have to restructure their financial system, he said, Chinese authorities can focus on re-accelerating economic growth with measures like the 4 trillion yuan ($585 billion) investment plan the government announced in November.

Read the rest:
http://online.wsj.com/article/SB1
23631015766548975.html

China likely to miss energy saving goal for 2008

December 13, 2008

China is likely to miss an energy saving target that it has set itself for this year, state media reported Saturday, citing the nation’s top economic planning agency.

In the first nine months of the year, the nation cut average energy consumption by 3.46 percent, the Xinhua news agency reported, citing the National Development and Reform Commission.

Workers install an electrical pylon in the southwestern province ... 
Workers install an electrical pylon in the southwestern province of Sichuan. China is likely to miss an energy saving target that it has set itself for this year, state media reported Saturday, citing the nation’s top economic planning agency(AFP/File/Liu Jin)

This makes it unlikely that China will meet its full-year target of a four-percent reduction.

The target was part of a larger ambition of reducing average energy consumption by 20 percent over the period from 2006 to 2010.

This first two years also fell short of the targets, with a 1.79-percent reduction in average energy consumption in 2006 followed by a 3.66-percent drop in 2007, according to Xinhua.

China has come under growing pressure to improve energy efficiency as its dependence on imported energy has risen, while its environment has continued to deteriorate.

–AFP