TRANSPORT BOOM: Shanghai Yangshan Deepwater Port is busy with shipping traffic. China's cargo throughput at ports nationwide soared 9 percent year on year in 2009 to reach 7.657 billion tons, said the Ministry of Transport (CHEN FEI)
Numbers of the Week
China's power consumption in June increased around 14 percent year on year in June to 352 billion kwh, said the National Energy Administration.
Hainan Province plans to invest more than 3.5 trillion yuan ($516.6 billion) to develop itself into an international tourist destination by 2020, said the Hainan Provincial Tourism Development Committee.
TO THE POINT: The National Bureau of Statistics released economic data for the first half of 2010 at a press conference on July 15, providing fresh insight into the status of the Chinese economy. The country's GDP surged 11.1 percent in the first six months with investments and consumption holding up well. Hard-hit exports regained some lost ground, drawing strength from the world economic recovery. Meanwhile, inflation remains largely subdued as the CPI grew 2.6 percent. House prices in 70 large and medium-sized cities rose 11.4 percent in June, but economists believe price declines are already on the way.
By HU YUE
China's GDP soared 11.1 percent in the first half of 2010 to reach 17.28 trillion yuan ($2.55 trillion), said the National Bureau of Statistics (NBS).
The Chinese economy has returned to good health while many other countries are still reeling from deep gloom, said Sheng Laiyun, spokesman of the NBS.
It is still necessary for the government to maintain flexible policies and respond to uncertainties ahead, he said.
China enjoyed strong growth rates in early 2010 in part due to a low comparison base last year, said Zuo Xiaolei, chief economist at the Beijing-based China Galaxy Securities Co. Ltd. But now the comparison base has become more demanding.
Ha Jiming, chief economist at the China International Capital Corp. Ltd. agreed. With investments tapering off and bank lending slowing, the economy is bound to lose some steam, he said.
The top priority of the country now is to rebalance the economy and foster consumption as well as the service industry, said Ha.
CPI & PPI
The consumer price index (CPI), a barometer of inflation, rose 2.6 percent year on year in the first half of 2010, well below the 3-percent government-set target for the year. The figure for June stood at 2.9 percent, down from 3.1 percent in May.
The producer price index (PPI), a measure of inflation at the wholesale level, went up 6 percent in the first half. The figure was 6.4 percent in June, 0.7 percentage points lower than May.
Domestic food prices have witnessed an obvious drop in past weeks, relieving some pressure of inflation, said Tang Min, Deputy Director of China Development Research Foundation.
Inflation is likely to remain contained this year by the absence of price pressures globally while a wage-price spiral is unlikely, said the World Bank in a recent report.
In the first half of 2010, China's exports rose 35.2 percent year on year to reach $705.09 billion while imports totaled $649.79 billion, up 52.7 percent, said the General Administration of Customs (GAC). The trade surplus fell by 42.5 percent from a year earlier to $55.3 billion.