China’s retail sales and industrial output grew strongly last month as the government spent heavily on a stimulus to boost growth in the world’s third-biggest economy as exports plunged.
Retail sales rose 15.2 percent compared with May last year, up from April’s 14.8 percent growth rate, the Chinese National Bureau of Statistics reported yesterday. Industrial output rose 8.9 percent, rebounding from April’s lackluster 7.3 percent and exceeding March’s 8.3 percent rate.
Beijing is trying to shield China from the global slump by boosting domestic consumption with a 4 trillion yuan (US$586 billion) plan to inject money into the economy through spending on building highways and other public works.
PHOTO: EPA
Yesterday’s data highlighted the economy’s heavy reliance on government spending to maintain growth and the gap between stimulus-financed industries and struggling fields with exposure to plunging exports.
Output of stone and other minerals used in stimulus-financed construction rose 14.7 percent last month, while auto production jumped 29 percent, boosted by sales tax cuts and other government incentives for buyers. Among industries exposed to exports, output of computers and telecommunications equipment grew by just 4.3 percent.
Analysts also point to healthy retail sales as another possible source of growth, though consumer spending is still a relatively small portion of China’s economy.
The government has set a growth target of 8 percent this year, though the economy expanded by only 6.1 percent in the first quarter — its slowest rate since the 1990s, but the strongest for any major economy this year. The World Bank says it expects 6.5 percent growth for this year and private sector economists say the economy is improving.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
SHOT IN THE ARM: The new system can be integrated with Avenger and Stinger missiles to bolster regional air defense capabilities, a defense ministry report said Domestically developed Land Sword II (陸射劍二) missiles were successfully launched and hit target drones during a live-fire exercise at the Jiupeng Military Base in Pingtung County yesterday. The missiles, developed by the Chungshan Institute of Science and Technology (CSIST), were originally scheduled to launch on Tuesday last week, after the Tomb Sweeping Day holiday long weekend, but were postponed to yesterday due to weather conditions. Local residents and military enthusiasts gathered outside the base to watch the missile tests, with the first one launching at 9:10am. The Land Sword II system, which is derived from the Sky Sword II (天劍二) series, was turned