China’s industrial output, trade and retail sales improved last month, data showed yesterday, in positive signs for Beijing’s multibillion-dollar effort to restore stable growth in the world’s third-largest economy.
Consumer prices fell, possibly damping fears that stimulus spending might trigger a rise in inflation that could disrupt the rebound.
The flurry of data suggested China’s recovery is making progress, which could help to drive a global rebound from the worst economic downturn since the 1930s. But private sector activity is weak and economists say growth is still dependent on stimulus spending.
“The Chinese economy has shown some positive changes,” Li Xiaochao (李曉超), a spokesman for the National Bureau of Statistics, said at a news conference. However, he said, “profits of some enterprises still are in great decline.”
Industrial production rose 10.8 percent from a year earlier, the third straight monthly increase in growth, the statistics agency said. Retail sales climbed 15.2 percent, while investment in factories and other fixed assets also rose.
“These are mostly good signs,” said Citigroup economist Ken Peng (彭墾). “With improving external conditions, we should see growth pick up in the second half of the year.”
Imports and exports showed improvements over June, though both fell compared with a year earlier, customs data showed.
Imports dropped 14.9 percent from the same month last year, while exports fell 22.9 percent. But total trade was up US$17.5 billion from the previous month.
“That’s pretty solid improvement, even if the year-over-year comparisons continued to be ugly,” Peng said. He said last month’s declines were in part because the month was being compared with a peak in trade last year.
Also yesterday, the statistics bureau said July’s 1.8 percent fall in consumer prices from a year earlier was the sixth month of decline.
Wholesale prices fell even more sharply, dropping by 8.2 percent from a year earlier and reducing pressure for producers to pass on higher costs to consumers.
Such a decline was expected, especially because prices are being compared with a period of high inflation last year. But prolonged declines can cause economic problems.
“Deflation is still deepening,” said Citigroup’s Peng. “So demand is still not very solid, economy-wide.”
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS