China's Growth Is Unstable, Unsustainable
As a we see our China and its growth we are proud of them and their achievements... I would like to support them because they deserve their dignity in the world for their hard work. Meanwhile i have gone through these news which was shocking and i extend my support to them by sharing this with all of you. Let us Join hands for their sustainability .
''March 16 (Bloomberg) -- China's economic expansion, the source of about a 10th of global growth last year, is unstable and environmentally unsustainable, Premier Wen Jiabao said.
``China's investment growth is too high, lending growth too fast, liquidity excessive and trade and international payments very imbalanced,'' Wen said at a press conference in Beijing today. Energy efficiency and environmental protection issues haven't been ``properly resolved,'' he said.
Wen's comments underscore government concern that too many factories are being built in China, worsening pollution and leaving the world's fastest-growing major economy vulnerable to a slowdown in demand. A record $177.5 billion trade surplus has flooded the economy with cash, making it harder for the government to cool investment by reining in bank lending.
Data this week showed accelerating inflation, money supply and industrial production growth, while the February trade surplus was close to a monthly record. Central bank governor Zhou Xiaochuan said today he's watching inflation closely and Trade Minister Bo Xilai said he's ``very concerned'' about the surplus, suggesting the government may raise interest rates or further tighten lending.
``The odds of an interest rate hike are growing,'' Ben Simpfendorfer, an economist at Royal Bank of Scotland Plc in Hong Kong, said. ``The Chinese government wants to reduce liquidity in the economy and to discourage a reacceleration in credit growth.''
The benchmark Shanghai and Shenzhen 300 Index fell 1.6 percent to close at 2604.23 after Wen's comments, having earlier gained as much as 0.8 percent. The index has increased 153 percent in the past year.
Wen said the formation of a new investment agency to help manage China's $1.07 trillion of foreign-exchange reserves won't cause a slump in U.S. securities. China's purchases of U.S. dollar assets are ``mutually beneficial,'' he said.
The planned agency, announced by Finance Minister Jin Renqing on March 9, has prompted speculation that China's sales of dollar assets would push down prices. China is the world's second-biggest holder of U.S. Treasuries after Japan, with $353.6 billion in January.
The foreign-exchange reserves rose by more than $200 billion last year to become the world's largest, driven by the ballooning trade surplus. The surge has prompted criticism from U.S. and European lawmakers and manufacturers, who accuse China of keeping the yuan artificially weak to spur exports.
The yuan rose 0.02 percent to 7.7386 to the dollar as of 5:05 p.m., according to data compiled by Bloomberg. The currency has gained about 7 percent since China ended a decade-old peg to the U.S. dollar in 2005.
China's economy grew 10.7 percent last year, the fastest pace since 1995, driven by surging exports and investment. The economy expanded by at least 10 percent for the past four years.
``China has maintained relatively steady and fast growth over the past few years, but this is not a time for complacency,'' Wen told reporters at the National People's Congress meeting. ``The biggest problem in China's economy is that the growth is unstable, imbalanced, uncoordinated and unsustainable.''
China's spending on factories, real estate and other fixed assets grew 23.4 percent in the first two months from a year earlier, the statistics bureau said today, slowing from a 24.5 percent pace in 2006 as government curbs took effect.
China's `Key Risk'
The People's Bank of China has raised interest rates twice since April and has ordered banks to set aside more money as reserves five times in the past nine months to help cool lending. The benchmark one-year lending rate is 6.12 percent after being last raised by 0.27 percentage point in August.
``The key risk in the Chinese economy remains a re- acceleration, not a significant slowing,'' said Glenn Maguire, chief Asia economist at Societe Generale SA in Hong Kong. ``The central bank will tighten soon.''
Money supply grew 17.8 percent in February, the most in six months. Inflation accelerated to 2.7 percent from 2.2 percent in January. Industrial production jumped 18.5 percent in January and February combined, the most in eight months.
Leaders at this year's meeting of China's legislature have repeatedly highlighted the need to tackle the environmental costs of a coal-powered economic boom, lagging rural incomes, and an excessive reliance on investment and exports for growth.
``China's growth is imbalanced between urban and rural areas, different regions and eastern and western regions,'' said Wen. Growth is uncoordinated between agriculture, industry and services, he said.
``Those are all pressing issues that need to be addressed as soon as possible, or they will threaten China's economic growth,'' Wen said. The government must boost domestic demand, open markets and promote technological innovation, he said.
Investment accounted for 52 percent of China's gross domestic product in 2005, the most recent figure available. That compared with 33 percent in India, the world's second fastest- growing major economy, in 2005-06.
The February trade surplus widened to $23.76 billion, close to October's record $23.82 billion.
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China with credibility :-
China is reputed as the oldest continuous civilization in the word. Its unique culture and customers make it a charming place for visiting. Before setting foot on this enchanting land, you are suggested knowing some facts about China including its people, language, Chinese names, etiquette and holidays.
Chinese names are composed of the surnames and the given names. The main sources of surnames come from the following cases: first, in matriarchal clan society, people took their mothers' given name as the family name, such as 姬 (Ji), 姚 (Yao) and 姜 (Jiang); second, in the distant past, the worshipped living creatures were taken as the family names, like 牛 (Niu), 马 (Ma) and 羊 (Yang); third, the ancestors' country names were taken as the family names, such as 宋 (Song), 秦 (Qin), 赵 (Zhao) and 吴 (Wu). The given names often connect with good wills, and men's given names are generally different from women's.
Chinese people are the largest nationality in the world. Since the earliest historical times, they have lived, multiplied and labored in this land. During the several thousand years' development, they have made great contribution to the world due to their wisdom and hard working. The advanced agriculture and manufacture, as well as the Four Great Inventions, have impressed and shocked the world.
China is one of the earliest places where mankind originated. Chinese civilization is the longest of the four ancient civilizations (the other three being the civilizations of the ancient Egypt, the Babylon and the ancient India). Early in the 21st Century BC, China entered the heritable imperial stage. Having experienced Xia, Shang, Zhou, Qin, Han, Tang, Song, Yuan, Ming and Qing Dynasties and many other turbulent times, the country finally ended the feudal society and the People's Republic of China was set up in 1949. Now with the correct policies issued by the Central Government, it is developing vigorously, becoming a main economic force in the world.
How people wear, what they wear can sometimes manifest a country's culture to some extent. Like most westerners, Chinese people also pay much attention to their dressing. In traditional festival, people will wear more formal than usual. On different occasions, different styles of clothes will be dressed. Sometimes, people are particular about the color of their dresses.
According to the Law of the People's Republic of China on Nationality, China does not recognize the dual nationality for any Chinese citizen. If a Chinese citizen bears another citizenship of a foreign country, the Chinese citizenship he possesses will be automatically invalid.
Being a state of ceremonies, China takes the etiquette as an important part of its traditional culture. The civilization of etiquette, rich in content, has made great influence to the history and development of Chinese society, and it almost permeates all aspects of ancient China. Moreover, endowed with the 5,000 years of civilization, Chinese people are known to the world for their politeness and good manners.
Holidays in China
The public holidays Chinese people enjoy now include the New Year's Day, the Spring Festival, the Qingming Festival, the May Day, the Dragon Boat Festival, the Mid-autumn Festival and the National Day. During these days, many people would like to have a good rest or go traveling. The Spring Festival and the National Holiday, these two 'Golden Weeks', are the peak times for passenger transport, as during these periods of time, Chinese people will go for family reunion or traveling, so you should avoid these days on your plan to China.
Chinese people speak mandarin (Putong Hua, Hanyu, Huayu, Guoyu, standard Chinese) which is based on Beijing Dialect. From the inscriptions on oracle bones in the Shang Dynasty, it is concluded that the formation of Chinese characters has a history of more than 3,000 years. Its development can be divided into two major periods: from inscriptions on oracle bones to mini-seal script, and from Li calligraphy to modern character
There are many different ways to know China, such as through television, newspaper, radio and internet, all of which are English-version available.
China is a beautiful land. The charming scenery will certainly impress you and make you cannot stop snapping the shutter. As in all countries, there are certain military/sensitive areas where pictures are prohibited. These areas are clearly marked.
The standard time used throughout China is eight hours ahead of the Universal Time Coordinated. It is called Beijing Time, but not refers to the Beijing (116.4 E. longitude) local time, instead, it is the time taken in Lintong District, Shaanxi Province whose longitude is 116 degrees east, the geometric centre of China.