Chinese Premier Wen Jiabao Sends An Ominous Warning On The Economy
Joe Weisenthal | Jan. 4, 2012, 6:32 AM
This is getting some attention this morning: Comments from Chinese Premier Wen Jiabo in regards to a difficult economy.
From Bloomberg:
Chinese Premier Wen Jiabao said business conditions may be relatively difficult this quarter and monetary policy will be fine-tuned as needed.
We see downside pressure on our economy and elevated inflation at the same time, Wen said during a two-day trip to Hunan province, according to a statement on the governments website yesterday. We also face problems of weakening external demand and rising costs for companies.
In its first day of trading in the new year, the Shanghai Composite fell 1.3%.
Read more: http://www.businessinsider.com/wen-jiabao-warns-on-the-economy-2012-1#ixzz1iVo5yaFj
Octafish
(55,745 posts)Myrina
(12,296 posts)pampango
(24,692 posts)CHINA has warned its economy may struggle in the early months of this year due to ''difficult'' conditions but stressed it was ready to fine-tune monetary policy to limit any fallout. The policy shift to support growth was announced by the Chinese Premier, Wen Jiabao, and helped buoy global markets, following better-than-expected activity in China's manufacturing sector.
China has been trying to cool an overheated property market, by adjusting rates and borrowing criteria, but there have been mounting concerns growth is tailing off too fast, threatening the global recovery.
In comments published this week, Mr Wen said the first three months of the year would be ''relatively difficult'' and that ''the market is relatively cold - that's the core of current problems''.
The slowdown in Europe and the US has hit China, which is dependent on exports. At the same time, Beijing is anxious to avoid reigniting inflation, which hit a three-year high of 6.5 per cent in July but has since slowed to 4.2 per cent. ''We face problems of weakening external demand and rising costs for companies,'' Mr Wen said. ''We are now in a situation where pressure from an economic downturn and high prices both exist.''
http://www.smh.com.au/business/china-ready-to-act-after-tough-first-quarter-20120104-1pl3w.html
Sounds like they are trying to slow down the economy to control inflation, but don't want to slow it down too much.
Javaman
(62,439 posts)Uncle Joe
(58,107 posts)Thanks for the thread, G_j.
Dreamer Tatum
(10,926 posts)but they have the same credit crisis we had. Oops.
Uncle Joe
(58,107 posts)in their economy as exports dried up due to our and other nations' economic weakness and it would also foster their inflation.
Myrina
(12,296 posts)... about China's military power. They can fuck us financially any time they'd like - the Army can't do a thing about that.