A slowdown in China’s economy is perceived as being the biggest risk to Asia’s economic growth, a survey of powerbrokers in the region released yesterday said.
While there were also worries about the weakness in the European and US economies, the survey by the Pacific Economic Cooperation Council (PECC) think tank said there was more concern over the effects of a slowdown in China.
“In terms of risks to growth, regional opinion leaders were more worried about the impact of a slowdown in China than they were for slowdowns in Europe and the US, albeit by a slight margin,” it said.
Results of the survey — which included business executives, senior government officials and academics — were released in the Russian city of Vladivostok ahead of this weekend’s APEC leaders’ summit.
Donald Campbell, co-chair of the PECC, said the survey results emphasized China’s growing importance as global economy driver.
“If you take 10 years ago in terms of economic output, the Asia Pacific region was about 20 percent. Now it’s 35 percent, it’s the fastest-growing ... and it’s driven by China,” Campbell said.
“China is becoming very, very critical in terms of the world economy and growth so you can see the concern over any diminution in growth,” he added.
China’s insatiable appetite for raw materials and other goods has kept the factories of other Asian countries humming despite slower exports to the US and Europe following the 2008 financial crisis.
China is the largest trading partner of the 10-member ASEAN grouping, but a raft of recent data has shown the world’s second biggest economy is slowing.
China’s manufacturing activity fell to its lowest level in more than three years last month, according to a closely watched survey compiled by British banking giant HSBC.
This came after the Asian giant’s economic growth slowed to 7.6 percent in the second quarter, the worst performance in three years and the sixth straight quarter of slower growth.
According to the PECC survey, 56 percent of respondents “are gearing themselves for weaker economic performance from China over the next 12 months,” up from 36 percent in the previous poll last year.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion