Having a day when most of the China news was reporting on and reaction to the latest batch of macroeconomic statistics was . . . well, kind of relaxing. Moreover, the data was mixed, so there wasn’t even much in the numbers to get excited about. Considering the media hurricane we’re going to have next month with the big government meetings, we gotta enjoy days like these when we can get them.
A huge number of analysis articles out there dissecting the data. The big headlines included inflation (only 1.9), PPI (dropped 3.6, not good), imports (up 2.4), and exports (up 9.9, better than expected).
All in all, meh. The country is probably still limping along in the sevenses (as far as GDP is concerned). Things aren’t so bad that a huge stimulus package is called for, but with inflation under control, the option is there if absolutely necessary.
I think the markets kind of hate these sort of numbers. If things are really good, that’s something to celebrate. If things really, really suck, then a stimulus is in the offing, and someone somewhere is going to make some money from it. But with neither scenario likely, there’s not much to talk about.
Anyway, here’s some econ reading for you:
And if that didn’t get you excited, try some of this:
Gordon Chang: China Weaponizes Trade and Investment — Gordo sees China’s “economic diplomacy” in a sinister light.
Bloomberg: Obama Competes With Romney in Targeted Ad War on China Trade — more of the same from the U.S.
China bashing competition election campaign. If you’re keeping score at home, note that as of today, these guys are both losers.
China Daily: US politicians’ hypocrisy — Not sure if I’d want to try and conflate U.S. election rhetoric with the House report on Huawei and ZTE, but that’s exactly what this China Daily article does.
Morning Whistle: US launches 2nd round investigations into Huawei, ZTE — I still have more posts to write about the first investigation, and now we’re moving on to Phase II? I need to hire an intern or something.
New York Times: Turning Point for Suits Over Chinese Drywall — Speaking of stories that just won’t go away, you remember this one? These lawsuits are apparently not over yet.
Xinhua: China’s ZTE forecasts huge losses, US probes hurt — 3rd quarter looking ugly. Note that the “probes” mentioned are the ones about business with Iran, not the House report.
Financial Times: China: Beyond the conveyor belt — Rising labor costs and other changes to China’s manufacturing model.