Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

China’s Top Priorities in 2008: Reduce Economic Overheating and Curb Inflation

28.03.2008
Concerned about their country’s unprecedented high growth performance, the Chinese Government has declared reducing economic overheating and curbing inflation as its top priorities for 2008.

According to a study in China & World Economy published by Wiley-Blackwell, there are growing concerns over a possible ‘hard-landing’ for the Chinese economy as no economy can sustain such strong growth for a long period.

In November 2007, the consumer price index shot to 6.9 percent, while annual inflation rose to 4.8 percent – well above the government ‘comfort level of 3 percent. On the back of five consecutive years of double-digit growth, high growth in 2008 is still expected to continue while problems associated with such, growth will also remain.

Author of “China’s Economy in 2007/2008: Coping with Problems of Runaway Growth”, Professor John Wong says, “Any economy undergoing long periods of high growth will inevitably develop structural tensions, giving rise to distortions and imbalances as well as rising negative externalities. Cracks are bound to show up sooner or later.”

China is currently facing a type of cost-push inflation which is fundamentally caused by undervaluation of the Renminbi, which in turn is attributable to China’s chronic external and internal macroeconomic imbalances.

“China’s inflation has yet to generate serious inflation expectations as the Chinese government is still able to contain the inflation with measures such as reducing supply bottlenecks, stabilizing prices through controls and subsidies, and curbing speculative activities”, says Professor Wong.

On whether China’s growth can be decoupled from the effect of the current US economic uncertainty, Professor Wong argues that if the expected US recession is mild and short-lived, this could be a welcome breather for the overheated economy under a long spell of high growth. “But China”, he adds, “like other economies, cannot escape unscathed from a prolonged and severe US recession”.

Alina Boey | alfa
Further information:
http://www.blackwellpublishing.com/press/pressitem.asp?ref=1657

More articles from Studies and Analyses:

nachricht New study: How does Europe become a leading player for software and IT services?
03.04.2017 | Fraunhofer-Institut für System- und Innovationsforschung (ISI)

nachricht Reusable carbon nanotubes could be the water filter of the future, says RIT study
30.03.2017 | Rochester Institute of Technology

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Can the immune system be boosted against Staphylococcus aureus by delivery of messenger RNA?

Staphylococcus aureus is a feared pathogen (MRSA, multi-resistant S. aureus) due to frequent resistances against many antibiotics, especially in hospital infections. Researchers at the Paul-Ehrlich-Institut have identified immunological processes that prevent a successful immune response directed against the pathogenic agent. The delivery of bacterial proteins with RNA adjuvant or messenger RNA (mRNA) into immune cells allows the re-direction of the immune response towards an active defense against S. aureus. This could be of significant importance for the development of an effective vaccine. PLOS Pathogens has published these research results online on 25 May 2017.

Staphylococcus aureus (S. aureus) is a bacterium that colonizes by far more than half of the skin and the mucosa of adults, usually without causing infections....

Im Focus: A quantum walk of photons

Physicists from the University of Würzburg are capable of generating identical looking single light particles at the push of a button. Two new studies now demonstrate the potential this method holds.

The quantum computer has fuelled the imagination of scientists for decades: It is based on fundamentally different phenomena than a conventional computer....

Im Focus: Turmoil in sluggish electrons’ existence

An international team of physicists has monitored the scattering behaviour of electrons in a non-conducting material in real-time. Their insights could be beneficial for radiotherapy.

We can refer to electrons in non-conducting materials as ‘sluggish’. Typically, they remain fixed in a location, deep inside an atomic composite. It is hence...

Im Focus: Wafer-thin Magnetic Materials Developed for Future Quantum Technologies

Two-dimensional magnetic structures are regarded as a promising material for new types of data storage, since the magnetic properties of individual molecular building blocks can be investigated and modified. For the first time, researchers have now produced a wafer-thin ferrimagnet, in which molecules with different magnetic centers arrange themselves on a gold surface to form a checkerboard pattern. Scientists at the Swiss Nanoscience Institute at the University of Basel and the Paul Scherrer Institute published their findings in the journal Nature Communications.

Ferrimagnets are composed of two centers which are magnetized at different strengths and point in opposing directions. Two-dimensional, quasi-flat ferrimagnets...

Im Focus: World's thinnest hologram paves path to new 3-D world

Nano-hologram paves way for integration of 3-D holography into everyday electronics

An Australian-Chinese research team has created the world's thinnest hologram, paving the way towards the integration of 3D holography into everyday...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Marine Conservation: IASS Contributes to UN Ocean Conference in New York on 5-9 June

24.05.2017 | Event News

AWK Aachen Machine Tool Colloquium 2017: Internet of Production for Agile Enterprises

23.05.2017 | Event News

Dortmund MST Conference presents Individualized Healthcare Solutions with micro and nanotechnology

22.05.2017 | Event News

 
Latest News

How herpesviruses win the footrace against the immune system

26.05.2017 | Life Sciences

Water forms 'spine of hydration' around DNA, group finds

26.05.2017 | Life Sciences

First Juno science results supported by University of Leicester's Jupiter 'forecast'

26.05.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>