1. As suggested by me earlier that China growth is restricted and same is also amply proved by this report from Bloomberg and Forbes and same is listed for the benefit of all and especially overseas investors looking for investments in BRICs economy.
2. Manufacturing in China, the world's fastest-growing major economy, contracted for a second straight month in August, according to a survey of purchasing managers. The Purchasing Managers' Index was a seasonally adjusted 48.4, unchanged from July, the China Federation of Logistics and Purchasing said today in an e-mailed statement. Since July, Chinese policy makers have put extra emphasis on sustaining the economy's expansion rather than cooling inflation. Growth has slowed for four quarters and Vice Commerce Minister Gao Hucheng said last week that weakness in global demand will weigh on China's exports for the rest of the year.
3. That’s just one news article, but it’s a biggie. You see, unlike the US, China is a huge manufacturing nation. If a contracting manufacturing sector signals economic contraction in America, you can imagine what it means to a nation whose economy revolves around it.
4. Of course, this Chinese slowdown isn’t something I’ve made up. Even China is acknowledging a fear of a slowdown. According to Forbes…
5. China is considering a 370 bln yuan package of fiscal expenditures and tax cuts to stimulate the economy, the Economic Observer reported, citing a source close to the matter. The report said the plan includes 220 bln yuan in government spending and 150 bln worth of tax cuts.
6. Now, initially I thought that this slowdown was just an after affect of when China shut down manufacturing around the time of the Olympics to drop pollution levels, but now I’m seeing big companies making future decisions with the assumption of a Chinese slowdown.
7. The growth in China is petering out and thus these overseas investors can underatke investments in India which is growing at a rapid rate with free flow of information whereas it is filtered information being delivered in China. Let us all support democracy and give credence to the movement of Tibet which China is all out to suppress.
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