Recent economic data from China indicate that exports, real estate and investment, traditionally the bulk of China’s growth, have slowed down considerably, putting pressure on the country to come up with ways to steer its economy toward more sustainable growth levels.

After decades of double digit growth, the World Bank lowered China’s economic growth in 2012 to 8.2 percent. While the rate is higher than the government target of 7.5 percent, it is one percent lower than the 2011 figure.

“This kind of slowdown in China is not really a bad thing,” says Andrew Batson, research director at economic consultancy GK Dragonomics in Beijing. “It [the slowdown] is mainly a consequence of the success China has had in developing its economy so far,” he adds.

“What is complicating the picture in the short term,” Batson says, “is that China is also going through a cyclical downturn.”


April’s statistics showed that China’s many economic indicators were lower than what economists had expected. Sluggish American and European demand for exports, combined with a substantial cooling of the Chinese real estate sector, weighed on industrial production, investment and exports.

The World Bank has warned of the risk of a slump.  It has advised policymakers in Beijing on how to “sustain growth through a soft landing,” and how to shift the economy from dependency on exports to one driven by domestic demand.

via Economic Slowdown Challenge to China’s Leadership.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

China M&A deal value soars 50% YoY in Q3 2022

Even though the global deal value saw a 48% year-on-year drop in Q3 2022, China still managed to record 50% growth during the quarter, according to GlobalData, a leading data and analytics company.

Bangkok to Host World Chinese Entrepreneurs Convention (WCEC) in June

According to Thai-Chinese Chamber of Commerce Advisor Lin Wei, guests will include Chinese nationals and members of civic and governmental groups from nations worldwide.

China’s Reopening Should Bring Timely Boost to ASEAN+3

Deteriorating global economic conditions are weighing on the region’s outlook, but China’s reopening last December should provide some counterbalance.