Saturday, January 12, 2008
China's economic expansion peaked last year
-- China's trade surplus narrowed in December and money-supply growth dwindled, signaling that the fastest economic expansion in 13 years may have peaked. --The trade surplus shrank to $22.7 billion from $26.2billion in November, the Chinese customs bureau said in Beijing today. M2, the broadest measure of money supply, rose 16.7percent to 40.3 trillion yuan ($5.55 trillion) from a yearearlier, the smallest increase in seven months, the central bank said. --Exports grew at the slowest pace in two years, indicating that recent appreciation of yuan value, the cooling global economy, and export-tax disincentives towards polluting industries are beginning to weign on China exports. The central bank is still likely to take more measures tolimit credit, ease inflation from an 11-year high and preventthe economy from overheating just as the U.S. expansion isfaltering. --China's economy, the world's fourth largest, expanded 11.5 percent in 2007, according to government forecasts. Wangestimates it will grow between 8 percent and 10 percent over thenext three to five years. --Television sales at TCL Multimedia Technology Holdings Ltd., a unit of China's biggest consumer electronics maker,slumped 33 percent in November from a year earlier. --A 1 percentage point slowdown in the U.S. would trim China's export growth by 4 percentage points and reduce gross domestic product by 0.5 percentage point, according to Ma Jun,chief China economist at Deutsche Bank AG in Hong Kong. --China's foreign-exchange reserves, the world's biggest, rose 43 percent to a record $1.53 trillion at the end of 2007 from a year earlier, today's central bank statistics showed.