China's 9.7% Q1 growth rate causes concern

[dArKeR]

AFP , BEIJING
Friday, Apr 16, 2004,Page 12

China said yesterday that its economy grew 9.7 percent in the first quarter, setting off warnings that companies are investing at a feverish pace and triggering expectations of an imminent interest rate hike.

Asia's second-largest economy was fueled by heavy spending on new plant and equipment in the first three months, with investment in fixed assets rising by a breathtaking 43 percent, according to the National Bureau of Statistics.

"It's just unsustainable," said Dong Tao, a Hong Kong-based economist for Credit Suisse First Boston.

"I think an interest rate tightening is inevitable," Dong said.

The first-quarter economic growth figure compared with a 9.9 percent expansion in the fourth quarter of last year and 9.1 percent for all last year.

http://www.taipeitimes.com/News/worldbiz/archives/2004/04/16/2003136902

[Robin Hood]

1. American jobs fueling China's prison dissident economy.

Sickening. God damn benedict Arnold Corporations.

[NuttyFluffers]

2. part of it makes me feel like it's maoist revenge...

i mean every single thing communist china has done recently flies in the face of the 'economic game.' they seem to realize the achilles heel of capitalism and are playing it better than the western countries because: a) nationalism protectionist policies aren't too far off from how they were thinking before b) this means allows them to hoard as much wealth as possible for safety in the face of collapse c) it destroys capitalism through its own vices and places global economic power into their hands (as they've historically always felt where it belonged).

something about their policies make me think there's something else behind their thinking. left over communist revolutionaries actively courting capitalism and yet playing the game against all the established rules tends to strike me as fishy. to give up all this state power for a money grab? no, there's something up...

[David__77]

3. Excellent. I am very pleased!

I hope that China's economy continues its miraculous growth. It is emerging as a truly sovereign nation in the third world, that will be no one's junior partner or lackey. Tens of millions are emerging from poverty.

Hopefully they can successfully bring development to inland regions. Polarization is a big concern.

[gulliver]

4. Competing for oil too.

They mentioned on NPR a couple of days ago that China might be part of the reason gas prices are going up.