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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (56311)	11/22/2004 1:22:26 PM
From: RealMuLan	Read Replies (1) \| Respond to of 74559

China economy surges ahead as predicted By ANGIE NG in Beijing THERE is no stopping China and it is all systems go for the world’s fastest growing economy to make greater leapfrog progress in its growth all round. The dragon has finally awakened from its slumber and it looks like what the astrologer has predicted: China will become an economic power house and maintain its robustness for the next two decades is coming true. China’s economy accounts for about 12% of world output, double its input a decade ago. In its bi-yearly outlook for Asia, the World Bank has predicted a 9.2% growth for China this year, up from 9.1% in 2003. From the packed shopping bazaars and streets to department stores and restaurants, it is little wonder that the world’s most populous country will benefit from its huge production and consumption capacity – thanks to its 1.3 billion population. The huge population has become an asset as the wage advantage and big domestic consumption are pulling in investors and manufacturers to set up shop there or relocate from other parts of the world. China, hailed as the world’s cheapest manufacturing factory, has attracted substantial foreign direct investments (FDIs) by the billions to its shores. With China's sizzling economic growth, demand for steel has soared. The inflow of FDIs has been instrumental in modernising the country and set the benchmark for local enterprises to expand their businesses and promote higher professionalism. Figures released by the Commerce Ministry showed that in the first 10 months this year, China attracted US$53.8bil in FDIs, up 23.47% year-on-year. The high rate can be interpreted as a sign of confidence among investors that China’s economy is successfully making a soft landing. To avoid an overheating in the economy and restrain inflation, the Chinese Government had recently raised interest rates. More capital looks set to be drawn to other fields such as banking, tourism, commerce, health and education as China sticks to the Dec 11 World Trade Organisation (WTO) deadline. According to Hong Kong investor, Arnald Ho, who is the managing director of Print-Rite Holdings Ltd, China has become a favourite investment destination for manufacturers from many countries, including Hong Kong, Taiwan and Singapore. “The quality of labour force has shown marked improvement and its rapid economic growth and rising affluence of the people have set the stage for even more robust growth in the years to come,” he told an 11-member delegation led by Human Resources Minister Datuk Dr Fong Chan Onn at his plant in Zhuhai Nanping Industrial Park last Monday. The delegation was in Beijing, Zhuhai and Guangzhou for a week-long trip to explore bilateral co-operation in the field of vocational training and manpower social security measures with China. Fong, who also officiated the China FIA World GT Championship 2004 at the Zhuhai International Racing Circuit (ZIC), said the robust Chinese tourism market posed great potential for Malaysia. Malaysian property group, LBS Bina Group Bhd, is managing the ZIC facility. The tourism industry, both inbound and outbound, is taking off in a big way. Chinese tourists are flocking airports for the many attractions around the world, including Malaysia. At the new Guangzhou Airport, which has become a new showpiece of the rapid economic progress of the Pearl River Delta in south China, business is as busy as ever with groups of tourists, businessmen and local travellers waiting in line for their flights. Malaysian leaders are optimistic that China’s rapid growth will spawn many new opportunities for the promotion of bilateral trade relations and co-operation with Malaysia. Trade between the two countries had grown nearly 10-fold to RM44.1bil in 2002 from RM4.6bil in 1992. Bilateral trade relations between China and Malaysia will be bound more tightly when the Asean-China Free Trade Area is put into place by 2010. Fong said while Malaysia was moving up the manufacturing value chain by moving into higher value-added industries, the process had spawned many highly skilled managers who could serve as the bridge to access the Chinese market. thestar.com.my