With the Western permabears anticipating yet another immanent implosion of the Chinese economy, the state media is reporting a healthy consolidation based on increasing self-sufficiency and new partners.
China has been in a transition from investment and export-fueled development growth model to one that draws strength from innovation, consumption and service sector.
"The new drivers have played a key role in sustaining growth, adjusting the economic structure and expanding employment," Premier Li Keqiang said when addressing the opening plenary of the Summer Davos in northern port city of Tianjin.
Consumption has played a more prominent role in driving growth, contributing to 78.5 percent of economic expansion in the first half of the year. The proportion was up from 58.8 percent in 2017.
The service sector contributed 60.5 percent of the overall economic growth in H1, 23.8 percentage points higher than the secondary industry.
High-tech industries and equipment manufacturing, dubbed as new driving forces, are booming and attracting increasing investment, when growth of overall investment has been declining since the beginning of the year.…This is exactly what is called for at this stage of China's development process.
Ecns
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https://www.zerohedge.com/news/2018-10-01/chinas-ministry-truth-blocks-bad-economic-news-reporting-growth-slumps
“China's Shadow-banking system is collapsing”
Broker-Dealers or metaphorically “shadow banks!” are the first to get their credit lines reduced when the CB starts to increase reserves at the depository institutions....
They are in the beginning or the “Bear Stearns” phase of their GFC..... will continue to get worse if they continue to increase reserves.... they need to stop adding reserves...
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