According to an article published in the Wall Street Journal today,China's GDP slower growth ripples globally.With winners and loosers."The ones that benefited the most from China's rise are now being hurt. Others, aiming at China's 1.3 billion consumers, are faring better.
Growth in China, the world's second-biggest economy after the U.S., has been slowing since 2007's peak, but that slowdown has accelerated recently.
Growth in China, the world's second-biggest economy after the U.S., has been slowing since 2007's peak, but that slowdown has accelerated recently.
China's second-quarter gross domestic product released early Monday showed the economy expanded 7.5% from the year earlier, slower than the 7.7% growth in the first quarter.
China is trying to pull off a tricky rebalancing. It hopes to reshape its economy to be less reliant on construction and heavy industry, and more reliant on consumer spending. This is sparking optimism among industries such as car makers and food producers.
To boost domestic consumption, the government has raised minimum wages to put more money in people's pockets and loosened controls on interest rates to give household savers better returns. It has tilted tax and land incentives toward industries that cater to consumption, such as food and autos, and away from heavy industries suffering from overcapacity, such as steel making and ship building.
China's economic growth is still strong, compared with much of the world. But recent single-digit expansion rates are a notable comedown from a 14.2% peak in 2007.The deceleration is particularly hard on commodities producers—the biggest beneficiaries of China's boom.
China is set to contribute 13% of global economic activity this year, compared with 5% in 2006. So even at a slower growth, China's effect world-wide is significant.
A more serious decline in China's growth rate would reverberate around the world".
