Chinese Economy | featured news

Stocks are opening lower on Wall Street, deflated by signs that the global economic meltdown is being felt across Asia... China reported sharply lower growth in its exports. The so-called fiscal cliff, when U.S. government spending cuts and higher taxes kick in on Jan. 1, looms larger now that the distraction of earnings season is over.

Signs that the Chinese economy is sputtering mounted Friday, in the form of dismally feeble trade data that fanned expectations that Beijing would soon step up its efforts to buttress growth before a key leadership transition this autumn.

Stocks edged slightly higher on Thursday, up for a fifth session, on better-than-expected jobless claims and trade data in the United States and hopes of further stimulus action from China's central bank.

China's industrial output and fixed-asset investment are expected to show signs of picking up in data on Thursday, indicating that the economy is starting to stabilize after sliding for six straight quarters.

Chinese Premier Wen Jiabao warned that China's economic rebound isn't yet stable and the hardship may continue for a period.

The slowdown added to worries about the ability of the world’s second-largest economy to offset low growth elsewhere. The country’s gross domestic product grew at an annual rate of 7.6 percent in the April to June period, down sharply from the 9.5 percent a year earlier, according to government figures released Friday morning. The second-quarter growth rate was half a point below the 8.1 percent for the first three months of this year.

China's economy appears to be weakening more rapidly than official statistics would suggest, raising fears of a painful slowdown that could be felt around the globe. Second-quarter gross domestic product statistics to be released this week are expected to show growth of around 7.5% compared with the same period last year, according to analysts' estimates. That would be the slowest pace since the depths of the global financial crisis. But government data are widely believed to understate the extent of China's woes.

Premier Wen Jiabao of China on Sunday called for the government to become more aggressive in using fiscal and monetary tools to respond to a slowing economy.

China's second surprise rate cut and lending reform in the space of a month shows that Beijing wants borrowing to play a greater role in reviving an economy struggling with its weakest pace of growth since the global financial crisis.

China's factory downturn worsened in June as a key activity index hit a seven-month low, data expected to raise expectations the central bank may seek more policy easing to revive the world's second-largest economy.