China’s economy may expand at the slowest pace in nearly two decades

When China’s President Hu Jintao made his first official visit to Washington in April of 2006, President Bush asked his counterpart which of the numerous challenges China faced was the most serious — which one kept Hu awake at night worrying. “Unemployment,” Hu reportedly answered without hesitating.
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China's President Hu Jintao speaks at a celebration meeting ... 
China’s President Hu Jintao speaks at a celebration meeting at the Great Hall of the People in Beijing November 7, 2008. China held a meeting on Friday morning to award people who made outstanding contributions to the Shenzhou VII manned space flight, Xinhua reported.REUTERS/Jason Lee (CHINA)
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By Paul Panckhurst and Li Yanping

Nov. 8 (Bloomberg) — China’s economy may expand at the slowest pace in nearly two decades next year as demand for exports slumps in the U.S. and Europe and government spending fails to bridge the gap.

Gross domestic product may advance 7.5 percent or less, the weakest since 1990, according to estimates by Credit Suisse AG, UBS AG and Deutsche Bank AG. Royal Bank of Scotland Plc predicts the economy will grow 8 percent next year, while 5 percent “can’t be ruled out.”

China hasn’t yet ramped up spending on railways, roads, and low-cost housing by enough to stop a slowing economy from cooling more, economists said. At stake is the contribution to global growth — 27 percent last year — that Premier Wen Jiabao says is the nation’s way of helping the world through the financial crisis.

China's Premier Wen Jiabao delivers a speech during the ...
China’s Premier Wen Jiabao delivers a speech during the opening ceremony of Beijing high-level conference on climate change at the Great Hall of the People in Beijing November 7, 2008.REUTERS/Jason Lee (CHINA)

“The government’s fiscal stimulus plan may not come in time to avert a deeper economic slowdown,” said Ha Jiming, chief economist at China International Capital Corp in Beijing. Growth may be 7.3 percent next year, he said.

Read the rest:
http://www.bloomberg.com/apps/news?pid=
20601087&sid=aUzk1Qc1r2aU

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China to Launch Stimulus Package?
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BEIJING (Reuters) – Evidence is mounting that China might launch a massive economic stimulus package in the near future as worries over a sharp slowdown in the world’s fourth-largest economy intensify, officials said on Friday.

From media reports to comments by government economists, speculation is swirling that Beijing would soon work out a comprehensive and aggressive plan soon to boost its sagging economic growth rate.

What lends more ammunition to the speculation is that China Finance Minister Xie Xuren earlier this week left the Asia-Pacific finance ministers’ conference in Peru suddenly before the gathering got underway.

He also canceled his attendance at the G20 meeting in Sao Paulo, Brazil, leaving his deputy, Li Yong, to represent the Chinese Finance Ministry.

Official sources said he was summoned back to Beijing by his bosses to discuss important and urgent policies.

Read the rest:
http://news.yahoo.com/s/nm/20081107/bs_nm/us_
financial_china_stimulus_1

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