China officially and uncharacteristically appears to be showing concern over slowing growth rates. While, it is laughable on the surface to call 7% or 8% growth a problem, China actually needs to add millions upon millions of jobs every year to keep up with population needs. While inflation and fast-rising food prices are a concern, the Chinese Ministry of Commerce noted significant price increases in recent weeks for staple products like eggs, cabbage and vegetables. Chinese Premier Wen Jiabao and others are eyeing export levels as a way to keep the economic machine in check and growing. To wit, Jiabao called the third-quarter a “crucial period” of 2012 for Chinese growth.
Jiabao is laying out a full-court press, so to speak, to exporters with announced visits to exporting districts intended to boost confidence and measures being put in place such as expedited export tax rebates and reduced fees for companies sending products elsewhere.
Typically a proverbial stone-faced nation that has enjoyed a lengthy string of economic prominence, the mood has shifted a few times throughout 2012. Still the leader of the emerging economies, Chinese officials tried to slow growth early in the year to try to reduce inflation and rampant overheating in the economy. Much to their chagrin, getting growth moving at hot levels again nearly instantaneously has proven to be more difficult then they may have planned. economy-driving growth levels.
- Brian Shappell, CBA, NACM staff writer