Until there s a reset in household spending, businesses will not be able to raise prices much, he explained. This is essentially gonna be a problem on the production side and, you know, specifically the factory side.
That hurts the amount of money manufacturers can make.
Official data on Wednesday showed China s producer prices surging 9% in May compared to a year earlier, the fastest since September 2008.
Miller said the inflation situation in China right now is very focused and centered on commodities, as well as factories which were being squeezed on cost. Yes, there s an inflation issue. Yes, it s gonna be tricky for some of the parties in China. But specifically … it s on the production side. It has not moved over to consumer side, he said. It s a fairly specific problem in China right now, even if it s rather intense for the time being.
American Rescue Plan: US stimulus seen widening trade deficit that sparked Trump’s trade war with China The US$1.9 trillion American Rescue Plan is poised to attract more Chinese imports. Photo: Reuters
The US$1.9 trillion American Rescue Plan is poised to attract more Chinese imports, and analysts expect it to widen the United States contentious trade deficit with the world s second-biggest economy.
The stimulus will add about US$30 billion to US imports from China this year, estimates Derek Scissors, chief economist at China Beige Book International, a data-collection platform tracking the Chinese marketplace. And if all of the stimulus dollars were to be spent rather than saved, Societe Generale estimates it would pull in as much as US$40 billion in additional Chinese imports.
By Chong Koh Ping and Drew FitzGerald The New York Stock Exchange will delist China s three large telecom carriers, after a U.S. government order barring Americans from investing in companies it says help the Chinese military. China Mobile Ltd. which is among the most valuable of China s listed state-owned enterprises will be kicked off the Big Board after more than two decades, along with China Telecom Corp. and China Unicom Hong Kong Ltd. The NYSE decision is the latest setback for U.S. investors in these companies, which rank among the largest global telecommunications providers but have largely lagged behind the broader markets since the companies began listing here more than two decades ago.
Smaller Chinese companies and those in the retail industry are struggling to access credit amid a weak recovery in consumer spending, according to China Beige Book International, a provider of independent economic data.