Chief Economics Correspondent, China
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Dec 2, 2010

China mulls $1.5 trillion strategic industries boost: sources

BEIJING (Reuters) – China is considering investments of up to $1.5 trillion over five years in seven strategic industries, sources said, a plan aimed at accelerating the country’s transition from the world’s supplier of cheap goods to a leading purveyor of high-value technologies.

Analysts expressed skepticism at the sheer amount of money — it equates to about 5 percent of China’s gross domestic product on an annual basis — but said that the eye-popping headline figure was an indication of the government’s determination to catalyze a structural shift in the economy.

Dec 2, 2010

China mulls $1.5 trln boost for strategic industries – sources

BEIJING (Reuters) – China is considering investments of up to $1.5 trillion over five years in seven strategic industries, sources said, a plan aimed at accelerating the country’s transition from the world’s supplier of cheap goods to a leading purveyor of high-value technologies.

Analysts expressed scepticism at the sheer amount of money — it equates to about 5 percent of China’s gross domestic product on an annual basis — but said that the eye-popping headline figure was an indication of the government’s determination to catalyse a structural shift in the economy.

Dec 2, 2010

Exclusive: China mulls boost for strategic industries: sources

BEIJING (Reuters) – China is considering investments of up to $1.5 trillion over five years in seven strategic industries, sources said, a plan aimed at accelerating the country’s transition from the world’s supplier of cheap goods to a leading purveyor of high-value technologies.

Analysts expressed skepticism at the sheer amount of money — it equates to about 5 percent of China’s gross domestic product on an annual basis — but said that the eye-popping headline figure was an indication of the government’s determination to catalyze a structural shift in the economy.

Dec 1, 2010

China factories ramp up output, input prices jump

BEIJING (Reuters) – China’s factories revved up production in November, but a big jump in input prices pointed to more inflationary pressure in the pipeline and a need for more monetary tightening.

The official Chinese purchasing managers’ index (PMI) rose to a seven-month high of 55.2 in November from 54.7 in October, topping the median forecast of 54.7 in a Reuters poll of 11 economists.

Nov 19, 2010

China’s yuan deserves a break in inflation blame game

BEIJING (Reuters) – Much as critics of China’s currency policy would like to pin the blame for the country’s bout of inflation on an undervalued currency, the truth is that a cheap yuan is just one cause of rising prices and certainly not the trigger.

The corollary may be even more unsettling for them. Without much appreciation, Beijing should be able to wrestle prices under control.

Nov 19, 2010

China raises banks’ RRR for 2nd time in two weeks

BEIJING (Reuters) – China’s central bank said on Friday it will raise banks’ reserve requirements for the second time in two weeks, stepping up its battle to rein in prices before inflation has a chance to take off.

The People’s Bank of China said it would increase required reserve ratios by 50 basis points. The fifth such move to be announced this year, it takes required reserves to 18.5 percent for big banks, a record high.

Nov 19, 2010

China raises reserve requirements again

BEIJING (Reuters) – China’s central bank said on Friday it will raise banks’ reserve requirements for the second time in two weeks, stepping up its battle to rein in prices before inflation has a chance to take off.

The People’s Bank of China said it would increase required reserve ratios by 50 basis points. The fifth such move to be announced this year, it takes required reserves to 18.5 percent for big banks, a record high.

Nov 19, 2010

China raises RRR again as inflation fight intensifies

BEIJING, Nov 19 (Reuters) – China’s central bank said on
Friday it will raise banks’ reserve requirements for the second
time in two weeks, stepping up its battle to rein in prices
before inflation has a chance to take off.

The People’s Bank of China said it would increase required
reserve ratios by 50 basis points. The fifth such move to be
announced this year, it takes required reserves to 18.5 percent
for big banks, a record high.

Nov 19, 2010

Analysis: China’s yuan deserves a break in inflation blame game

BEIJING (Reuters) – Much as critics of China’s currency policy would like to pin the blame for the country’s bout of inflation on an undervalued currency, the truth is that a cheap yuan is just one cause of rising prices and certainly not the trigger.

The corollary may be even more unsettling for them. Without much appreciation, Beijing should be able to wrestle prices under control.

Nov 18, 2010

Q+A-How serious is China’s inflation? What else will Beijing do?

BEIJING, Nov 18 (Reuters) – China has threatened to impose
price controls after soaring food costs pushed inflation to its
highest in more than two years, but monetary tightening may be
more effective in getting at the root of the problem.

Here are some questions and answers about inflation in
China, which has fueled public anger with the ruling Communist
Party in the past.

    • About Simon

      "Simon has been chief economics correspondent for China since October 2010. He joined Reuters in 2006 and spent a year in London before being posted to Beijing. Simon has a B.A. from McGill University in Canada and a Master's from the University of Oxford."
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