China needs to “reinvent itself” with economic policies to speed resolution of its property market crisis and boost domestic consumption, IMF managing director Kristalina Georgieva said yesterday.
“China faces a fork in the road — rely on the policies that have worked in the past, or reinvent itself for a new era of high-quality growth,” Georgieva said in remarks to a meeting of senior Chinese officials and company executives.
Officials who spoke at the opening of the China Development Forum expressed confidence China would hit its economic targets, including growth of about 5 percent this year, and pledged further support for companies.
Photo: AP
However, those commitments stopped short of the more sweeping changes urged by the IMF. Georgieva said an analysis by the IMF showed that a more consumer-centered policy mix could add US$3.5 trillion to China’s economy over the next 15 years.
To do that China would need to take “decisive” steps to complete unfinished housing stranded by bankrupt developers and to reduce risks from local government debt, the IMF chief said.
“A key feature of high-quality growth will need to be higher reliance on domestic consumption,” Georgieva said. “Doing so depends on boosting the spending power of individuals and families.”
Other economists have also urged a new growth model for China. However, the IMF remarks were significant in coming at the outset of a two-day meeting where Beijing is looking to push the message China is open for business.
Foreign investment flows into China shrank about 20 percent in the first two months of the year, data released on Friday showed, and officials have been stepping up efforts to attract investors.
Last year, foreign direct investment into China contracted by 8 percent, reflecting a shaky economic recovery and tensions with the US and its allies.
China’s Cabinet last week unveiled steps intended to win investment, including expanded market access and pilot programs to encourage investment in science and technology.
Chinese Premier Li Qiang (李強) yesterday said China’s previously announced US$140billion plan to issue ultra-long bonds would create a fund to spur investment and stabilize growth.
KEEPING UP: The acquisition of a cleanroom in Taiwan would enable Micron to increase production in a market where demand continues to outpace supply, a Micron official said Micron Technology Inc has signed a letter of intent to buy a fabrication site in Taiwan from Powerchip Semiconductor Manufacturing Corp (力積電) for US$1.8 billion to expand its production of memory chips. Micron would take control of the P5 site in Miaoli County’s Tongluo Township (銅鑼) and plans to ramp up DRAM production in phases after the transaction closes in the second quarter, the company said in a statement on Saturday. The acquisition includes an existing 12 inch fab cleanroom of 27,871m2 and would further position Micron to address growing global demand for memory solutions, the company said. Micron expects the transaction to
Nvidia Corp’s GB300 platform is expected to account for 70 to 80 percent of global artificial intelligence (AI) server rack shipments this year, while adoption of its next-generation Vera Rubin 200 platform is to gradually gain momentum after the third quarter of the year, TrendForce Corp (集邦科技) said. Servers based on Nvidia’s GB300 chips entered mass production last quarter and they are expected to become the mainstay models for Taiwanese server manufacturers this year, Trendforce analyst Frank Kung (龔明德) said in an interview. This year is expected to be a breakout year for AI servers based on a variety of chips, as
Global semiconductor stocks advanced yesterday, as comments by Nvidia Corp chief executive officer Jensen Huang (黃仁勳) at Davos, Switzerland, helped reinforce investor enthusiasm for artificial intelligence (AI). Samsung Electronics Co gained as much as 5 percent to an all-time high, helping drive South Korea’s benchmark KOSPI above 5,000 for the first time. That came after the Philadelphia Semiconductor Index rose more than 3 percent to a fresh record on Wednesday, with a boost from Nvidia. The gains came amid broad risk-on trade after US President Donald Trump withdrew his threat of tariffs on some European nations over backing for Greenland. Huang further
HSBC Bank Taiwan Ltd (匯豐台灣商銀) and the Taiwan High Prosecutors Office recently signed a memorandum of understanding (MOU) to enhance cooperation on the suspicious transaction analysis mechanism. This landmark agreement makes HSBC the first foreign bank in Taiwan to establish such a partnership with the High Prosecutors Office, underscoring its commitment to active anti-fraud initiatives, financial inclusion, and the “Treating Customers Fairly” principle. Through this deep public-private collaboration, both parties aim to co-create a secure financial ecosystem via early warning detection and precise fraud prevention technologies. At the signing ceremony, HSBC Taiwan CEO and head of banking Adam Chen (陳志堅)
RSS