China's economic recovery gathers pace

[pampango]

Source: BBC

China has shown further signs of economic recovery with factory output surging and its export slump easing. Industrial output in November rose to its strongest position since June 2007, rising 19.2% from a year earlier.

November's year-on-year fall in exports of 1.2% was the slowest of 2009, although growth had been expected. Imports rose 26.7% in November from a year earlier. This meant the country's trade surplus - the difference between imports and exports - narrowed to $19.9bn in November compared with $24bn in October.

There was further good news on domestic retail sales, which the Chinese government is actively trying to stimulate. The National Bureau of Statistics (NBS) said that sales were up 15.8% in November compared with the same time last year.

Earlier this week, the Chinese government said it would maintain its current fiscal and monetary stimulus for the moment, and look specifically to boost domestic demand. Mr Lin said the latest figures would not convince the government to rein in its stimulus measures.

Read more: http://news.bbc.co.uk/2/hi/business/8407327.stm

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Domestic demand in China will have to grow for a long time to make it significantly less dependent on exports for its economic growth, but it seems to be heading in the right direction.

[denem]

1. Carbon: "Industrial output in November rose ... 19.2% from a year earlier."

Want to guess how much carbon that took? Reportedly, two new coal power stations, every week, for the time being . A truly Herculean, WWII worthy, war on climate.

[AllentownJake]

2. They need to stop paying their people $2 a day if they want to increase domestic sales

[pampango]

3. Don't know where you got the $2 a day figure, but they can't rely on domestic demand

unless their middle class continues to grow for a long time.

[AllentownJake]

4. Sorry 57 cents an hour

They make $4.56 a day.

http://www.manufacturingnews.com/news/06/0502/art1.html

[pampango]

5. Up to $1.14 an hour ($9 a day) in 2009 ($.57 was 2005) and growing by 10-12% annually.

http://www.bls.gov/opub/mlr/2009/04/art3full.pdf

By any historical standard that is a pretty fast annual growth in manufacturing wages. If China can keep this type of wage growth up, they may have a decent chance at developing more of a consumer based economy.

[RedCloud]

6. What difference does it make if the Chinese desert is growing faster?

[WriteDown]

7. China's doing it right!

:eyes: