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Economic "remedy" eyes more than growth[1]|chinadaily.com.cn

Economic "remedy" eyes more than growth[1]|chinadaily.com.cn | China | Scoop.it
People may expect a policy to take effect immediately, but they should take a new perspective to weigh China's new remedy in light of the economic slowdown.
Tiffany Li's insight:

China's reform policies are targeting more than just short term growth-they're also targeting economic restructuring and stabilizing growth. New policies such as cleaner energy projects will help pollution problems, and a bigger percentage of private capital in sectors will bring many different investors. Also, shanty town renovation and affordable housing can benefit the shrinking housing investment in China. 3 million jobs were also created to reduce unemployment. This could lead to a change for the better in China with more demand, more investment, and less unemployment. 

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People's Republic of China’s Economy Slows but Its Influence Rises

People's Republic of China’s Economy Slows but Its Influence Rises | China | Scoop.it
Although China’s economy has cooled this year, battering Chinese stock markets and creating worrying prospects for global growth, the ...

Via Red-DragonRising
Tiffany Li's insight:

Over the last months, China's money markets have slowed to a near halt and it's stock market suffered a roller coaster of results. Experts forecast predict that China's slowdown will for the rest of the year. Because of this prediction, consumers are likely to spend more now because later the price level will increase. This will temporarily increase GDP and price level.

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As China’s Economy Slows, the Pain Hits Home

As China’s Economy Slows, the Pain Hits Home | China | Scoop.it
Emerging markets are heavily exposed to any economic slowdown in China, but the most vulnerable producers may be the mines and farms in China itself.

Via tutor2u
Tiffany Li's insight:

Due to the slowing economy in China, the area hardest hit is the exports of precious metals.The exports of precious metals have decreased in the past years, so China has relied on imports instead. Exports have been down 20%. The imports of precious metals has surged from 2009 to 2013. Because of this, it leads to a lower price level and lower net exports. Since net export is part of GDP, it also leads to a decrease in GDP. Since the industry is struggling, the precious metal companies are likely to cut workers, which would again lead to less aggregate demand, lower price level, and even lower GDP.

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KFC's Big Bucket of Problems in China

KFC's Big Bucket of Problems in China | China | Scoop.it
Yum! Brands optimism about a fourth-quarter recovery for KFC in China seems to have been premature

Via tutor2u, George Surridge
Tiffany Li's insight:

KFC was predicting that the decrease in sales of KFC would turn around in the summer 2013. Sadly, they were wrong. KFC's profit has been down 68%. A decrease sales leads to a decrease in aggregate demand because people are wanting to buy less which would also lead to a decrease in GDP and price level.

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Richard Smith's curator insight, December 29, 2013 3:13 PM

Originally a success story but now encountering some problems

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Revlon to Exit Operations in China, Cut 1,100 Jobs

Revlon to Exit Operations in China, Cut 1,100 Jobs | China | Scoop.it
Revlon Inc., the maker of cosmetics under its namesake and Almay brands, will cease operations in China and eliminate about 1,100 positions, including 940 beauty advisers, as it restructures its struggling business.

Via tutor2u
Tiffany Li's insight:

Revon Inc, a makeup company, recently cut 1,100 jobs in China. The company's lost profit in 2011 and 2012.  The company is unable to gain importance in the beauty industry in China. Since the unemployment has increased, this lead to less inflation. This also leads to a decrease in aggregate demand and a decrease in price level and GDP.

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Russian natural gas contract looks likely: Experts|Economy|chinadaily.com.cn

Russian natural gas contract looks likely: Experts|Economy|chinadaily.com.cn | China | Scoop.it
Russia and China are highly likely to nail down a natural gas deal during Russian President Vladimir Putin's visit to Beijing in May after years of negotiations.
Tiffany Li's insight:

Russia and China are likely to settle a deal over Russia's natural gas exports. An expert states that the price may be around $400/ 1000 cubic m, with Russia supplying China with 38 bcm of gas. This means that China's supply will increase because of an increase in materials to produce goods (natural gas). In addition, China's supply would also increase because of improved infrastructure and technological advances. It would also mean a decrease in demand because there'd be more imports, which would lower net exports. 

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China Splurging on Military as US Pulls Back

China Splurging on Military as US Pulls Back | China | Scoop.it
China's navy commissioned 17 new warships last year, the most of any nation. In a little more than a decade, it's expected to have three aircraft carriers, giving it more clout than ever in a region of contested seas and festering territorial disputes. Those numbers testify to huge...
Tiffany Li's insight:

China's defense spending this year grew by 12.2%. This has given Beijing the means to change the balance of power in Asia. China has the largest military budget, behind the United States, with an increasing defense industry. It still lags far behind the U.S. in funding and technology, but the spending boom is attracting new studies at a time of severe cuts in U.S. The increase in defense spending is increasing China's economy as a whole. But at the same time, the tax rates will most likely go up due to the wide use of government spending.

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Infrastructure projects set to boost growth|Economy|chinadaily.com.cn

Infrastructure projects set to boost growth|Economy|chinadaily.com.cn | China | Scoop.it
China announced 80 major public infrastructure projects on Wednesday to arrest the economy's slowdown while experimenting with wider access for private and overseas investors.
Tiffany Li's insight:

Because of China's slowing economy, they plan to increase infrastructure projects to increase investment,  which increases aggregate demand and boosts economic growth. Some of these projects include railways, research into information technology, hydropower, and many more. They will also benefit both overseas and domestic investors. These improvements will lead to an improved economy through more demand and supply. 

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China factory activity shrinks for fourth month - Reuters

China factory activity shrinks for fourth month - Reuters | China | Scoop.it
Economic Times China factory activity shrinks for fourth month Reuters China's central bank will cut the amount of deposits rural banks must hold as reserves by between 0.5 and 2 percentage points, it said on Tuesday, the latest in a series of...
Tiffany Li's insight:

China's economic activity has experienced a slowdown recently, shown through factories. Annual growth has decreased to 7.4%, hinting at a downturn in the Chinese economy. In response to this downturn, China has lowered reserve requirement in banks to increase money supply and tax cuts to increase demand. Also, China will focus on creating more jobs for people to prevent a recession and increase demand. 

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China Court Impounds Japanese Ship in Unprecedented Seizure - Bloomberg

China Court Impounds Japanese Ship in Unprecedented Seizure - Bloomberg | China | Scoop.it
BBC News China Court Impounds Japanese Ship in Unprecedented Seizure Bloomberg The holding of the ship reflects strained ties between China and Japan amid a territorial dispute over an island chain and visits by Japanese politicians to a Tokyo...
Tiffany Li's insight:

Recently, China has seized one of Japan's ships and ordered it to be impounded. This is a result of the loss of 2 of China's ships in World War II. Not only does this conflict cause tension, but Japan and China have a conflict over ownership of an island. These tensions and conflicts could lead to less trade between Japan and China, meaning less exports from China. This leads to a further decrease in GDP and a decrease in aggregate demand. 

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