(Source: The Yomiuri Shimbun)
By Yasushi Kouchi, The Yomiuri Shimbun
Oct. 23--BEIJING -- The 8.9 percent real growth in China's gross domestic
product in the July-September period from the same period in the previous year
demonstrates how the Chinese economy has been moving toward recovery, escaping
the damage caused by the global economic crisis before other countries.
However, this growth has been boosted by the Chinese government's massive
spending on economic stimulus measures. The exports that once led the
country's growth are still weak, fueling concern over such problems as excess
production capacity.
Japan, the United States and European countries, all of which are lagging
in their own economic recoveries, expect China to lead the global economy out
of recession. Is it possible, however, for that country to play such a role?
Baosteel-NSC/Arcelor Automotive Steel Sheets Co. (BNA), a joint venture
established by Japanese steelmaker Nippon Steel Corp., China's Baosteel Group
Corp. and others, has been operating at full steam.
A Shanghai-based manufacturer of steel sheet, BNA produces one-fourth of
all the steel sheet used in automobiles made in China. With a flood of orders
from Chinese automakers, the company is planning to move forward the launch of
a new production line that was originally scheduled to start operation next
February.
The volume of China's auto sales for this year's January-September period
amounted to about 9.66 million units, more than the total for all of 2008. The
rise is due to an increase in consumer income as a result of China's economic
growth and the government's stimulus measures, including a cut in the purchase
tax on small cars. Some automakers have been unable to keep up with demand,
prompting them to sell the cars on display in their showrooms.
The recovery of the Chinese economy has been supported by the
government's four trillion yuan (53 trillion yen) in economic measures,
launched in November 2008. As part of these measures, investment in fixed
assets, including such social infrastructure as railways and roads, surged
33.4 percent over the January-September period from the same period a year
earlier.
The nation's industrial output in July-September grew 12.4 percent,
compared with 5.1 percent growth in the January-March period, indicating the
accelerating recovery of the Chinese economy.
Retail sales, which indicate trends in private consumption, have been
recovering steadily, showing 17 percent growth in the July-September period
from a year earlier.