The China syndrome: Year of the Rabbit

30/01/11 - The Independent

As another Chinese New Year dawns this week, Jonathan Fenby assesses the world’s second-biggest economic power – and charts the risks ahead

China enters its lunar new year on Thursday in anything but rabbit fashion. Having overtaken Japan to become the world’s second biggest economy late in 2010, it has just unveiled economic figures that underline its continuing ability to deliver high levels of growth (10.3 per cent) accompanied by a string of superlatives – from having the world’s biggest car market (13.8 million sales) to holding the largest cache of foreign reserves ($2.85trn). Goldman Sachs forecasts that the last major power ruled by a Communist Party will surpass the United States by 2027. Others see this happening earlier.

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Swallowing China’s economic medicine

24/06/09 - The Guardian

China has raced to prop up threatened industries and preserve jobs, but will these moves drive a global recovery?

Hope never dies, particularly not when it can give the stockmarket a boost in uncertain times. When the financial crisis rolled out into a general economic downturn last year, the theory of “decoupling” raised its head, offering the prospect that China and other big emerging economies would be able to continue to grow in such a way as to keep the global economy afloat. That proved not to be the case as the BRICs (Brazil, Russia, India and China) felt the strain of sharply falling external demand and the tightening of capital flows.

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