China's economy posts steady growth but risks remain

Robyn Ryan
July 17, 2017

The Chinese authorities are targeting growth of around 6.5% this year, slightly lower than last year's actual 6.7% which was the weakest in 26 years.

On a quarterly basis, China's growth improved to 1.7% in Q2 compared to past year.

As compared to China, India's GDP only grew by 6.1 percent in the first quarter, which is also less than the preceding year's projection of 7 percent. It is unclear whether the new method has been used for Monday's second quarter GDP read.

Meanwhile, China's aluminum production rose 7.4 percent year-on-year in June to its highest level on records back to 2014. There is fear that growing debt in the manufacturing sector could combine with overcapacity to drag the economy down, and there are also worries that large cities are now in the middle of a property bubble.

"Overall, the economy continued to show steady progress in the first half.but global instability and uncertainties are still relatively large, and the domestic long-term buildup of structural imbalances remains", said the statistics bureau in a statement. In the first half, retail sales advanced 10.4%. The president said at the National Financial Work Conference on the weekend he wanted to give China's central bank a bigger role in dealing with risks in the financial system.

Retail sales rose 10.4% in the first half of the year, up 0.1 percentage points from the first quarter's rate.

Some 7.35 million new jobs were created in China's urban regions from January to June, 180,000 more than the same period previous year, while per capita disposable income grew 8.8 per cent, the data said.

The Chinese government has sought to dampen soaring property prices in recent months by rolling out a host of restrictive measures, indicating real estate is a major contributor to economic growth.

The higher throughput came after another month of strong crude oil imports and as top refineries prepared to cut output in the third quarter.

"The national economy performed within an appropriate range with more visible good momentum", NBS said.

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