China, Second world power, dragged good economic performance recorded last year to first months of this 2018. The Asian giant grew 6.8% interannual, an expansion rate equivalent to that experienced during last quarter of 2017 and above target marked by authorities. The robustness of consumption, good behaviour of foreign trade and recovery of private investment drove economy, which seeks to reduce its dependence on enormous amount of credit poured over past few years.
"The economy managed to sustain its momentum and remained stable," said Tuesday at press conference spokesman of National Bureau of Statistics, Xing Zhihong. According to official figures, China accumulates almost three years expanding at incredibly stable rates of between 6.7% and 6.9%, all of m above 6.5% established by Beijing. While this consistency in numbers is viewed with suspicion, analysts agree that economy of Asian country — along with virtually rest of world — is at a sweet moment.More information
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With consumer confidence ratings at a historic peak, retail sales grew 9.8% in first quarter, industrial production 6.8% and investment 7.5%. Particularly relevant was behavior of investment from private companies, which expanded to levels not seen since year 2015. Over past two years government has been-through public spending-and state-owned enterprises that have countered weak investor appetite in private sector.
This strategy worked to prevent a sharp slowdown in growth, but left a mountain of corporate debt that has become main financial risk for second world economy. The recovery of private sector and good behavior of consumption gives more space to authorities to tackle this problem.
Reducing debt, reducing air pollution, and eradicating poverty are three mantras of President Xi Jinping's "New Age." The first two involve inflicting damage on economic growth, one because it forces companies to confront a painful process of deleveraging; Anor is because it involves cutting production of industries that sustain economic activity of whole provinces, size of which is similar to that of a large European country. Taking decisive steps in se tasks seems easier if consumers spend at record levels and global demand for Chinese products remains strong.
In this sense, possibility of a wide commercial conflict with United States casts plans and forecasts of authorities. For now tariffs in force have a meager impact on economic growth, but if Trump administration fulfills its promises to extend liens to many or products and Beijing does same with American imports, effect would be much more Visible. "I understand your concern about this, but friction with United States will not affect China or change good moment of our economy. We will know how to adapt to circumstances, said Xing.