Report out that China’s growth is slowing, only growing at 9% last quarter, compared to just over 10% the previous two quarters. Slowing demand for exports is blamed.
China’s State Council has begun drafting measures to counter the slowdown, including export tax rebates on labor-intensive products such as clothing, as well as on electronics and small appliances. They also promised more support for the ailing housing sector and money to rebuild areas devastated by the May earthquake, state-controlled media said Monday.
The money for rebuilding is certainly understandable, but the support for more exports does not seem necessary. 9% growth would be a windfall for most. It may be that policy makers are expecting a bigger drop in growth unless something is done.
At least in Suzhou, one certainly does not see a need for housing support. We have huge apartment blocks going up everywhere. Watching all the change is interesting, but I dread the traffic and noise getting even worse.