Connect with us

World

Global Economy Squeezed by Worsening Slowdown in China

Published

on

A woman walks by an advertisement billboard for a new shopping mall which is under construction in Beijing, China Tuesday, Jan. 20, 2015. China's economic growth slowed to 7.4 percent last year, the weakest expansion in more than two decades. The numbers released Tuesday are still miles ahead of growth rates in major industrialized economies, but represent a sharp decline from double digit growth in previous years. That adds to pressure on the country's communist leaders as they try to prevent a sharper slowdown in 2015 while overhauling the economy. (AP Photo/Andy Wong)

A woman walks by an advertisement billboard for a new shopping mall which is under construction in Beijing, China Tuesday, Jan. 20, 2015. China’s economic growth slowed to 7.4 percent last year, the weakest expansion in more than two decades. (AP Photo/Andy Wong)

BY KELVIN CHAN, AP Business Writers
PAUL WISEMAN, AP Business Writers

HONG KONG (AP) — The global economy, slowed by stagnation in Europe and Japan, is being further hampered by China’s decelerating growth.

The Chinese economy grew 7.4 percent in 2014, its weakest performance in nearly a quarter-century. And its growth is forecast to slow even more over the next two years.

The figures released Tuesday remain, by just about any measure, impressive. China continues to grow at more than twice the pace of the overall world and about three times as fast as the U.S. economy. Yet its growth rate marks a sharp drop from China’s sizzling double-digit expansion in previous years.

And given its size, China has an outsize effect on the world. China’s share of the global economy climbed from 4.5 percent in 2000 to an estimated 11.3 percent last year, according to the World Bank.

“China is the second-largest economy in the world,” said Paul Sheard, chief global economist at Standard & Poor’s Ratings Services. “So when it slows, the rest of the world is impacted.”

On Tuesday, the International Monetary Fund downgraded its forecast for the global economy for this year and next and pointed to China’s slowing economy as a key factor. The IMF said China’s growth would weaken to 6.8 percent this year and 6.3 percent in 2016. China’s slowdown will dent growth in countries it imports from, especially in Asia, the report said.

China’s 2014 expansion was its slowest since 1990, when growth tumbled to 3.8 percent — a result of economic sanctions imposed on China after its violent crackdown on the Tiananmen Square protests. Last year’s 7.4 percent growth undershot Beijing’s target of 7.5 percent, its first miss since 1998, according to analysts.

Economists expect the slowdown to deepen, clouding the outlook for the world economy as China transitions away from an era of supercharged but unsustainable growth that fueled demand for everything from Australian iron ore to European luxury goods.

Few think the Chinese slowdown will do much direct damage to the strengthening economy of the United States. The United States is enjoying sustained improvement, with healthy job growth, falling oil prices, rising auto sales, low interest rates and an easing of government cutbacks fueling steady expansion.

The pain will be more intense in countries such as Australia and Malaysia that rely heavily on the Chinese market, said Nariman Behravesh, chief economist at IHS.

“Those most hurt will be the commodity-exporting countries in Africa and Latin America and China’s neighbors,” Behravesh said.

Chinese businesses are bracing for a more painful year.

“Competition will be even more difficult,” said Han Yi, a sales manager at Tianjin Yihsin Packing Plastic Co., which employs 700 people making plastic cups and cookie packaging in Tianjin, about an hour southeast of Beijing.

Han complained that sales in 2014 dipped about 5 percent from the year before and the company had to improve product quality and reliability to compete for new clients. Even then, it was able to win only one new account from a rapidly expanding customer.

“The situation would be much worse if we could not win this new client,” he said.

China’s slowdown is partly intentional: Beijing wants to move the country away from super-fast growth based on often-wasteful investment in factories and real estate to sturdier but slower growth based on spending by Chinese consumers.

The slowdown “is by and large a good thing,” S&P’s Sheard said. “China was growing at an unsustainably fast pace.”

But the transition, already difficult because consumers have never been the driving force behind China’s growth, has been buffeted by a range of problems. They include a slumping property market and uneven exports.

Some analysts expect China to gradually provide economic stimulus this year to prevent growth from fading too fast. But they don’t expect a major spending splurge. Debt is already at worrying levels after the government engineered a credit-fueled response to the 2008 global crisis.

“Credit risks will likely continue to prevent policymakers from using monetary policy too aggressively in order to shore up growth,” said Julian Evans-Pritchard of Capital Economics, who forecasts 7 percent growth in China this year.

Consumption should receive a boost from the slump in global oil prices. But it’s unlikely to fully offset the slowdown of investment in areas already suffering from overcapacity such as property and heavy industry, he said.

Chinese officials have tried to lower expectations by saying growth below the official target would be acceptable.

President Xi Jinping said last year that the economy has entered a “new normal.” But a surprise interest rate cut by policymakers in November indicated they were worried about a spike in job losses.

Growth in the fourth quarter of last year was 7.3 percent, unchanged from the previous quarter, which was the slowest quarterly expansion in five years. China’s economy grew 7.7 percent in 2013.

Staff at the Wanjiang Xiufang garment company in Dongguan, southern Guangdong province, said they were battling competition from an increasing number of rival factories even as consumer spending on the women’s and children’s clothing they make weakened.

Average profit on a hoodie, for example, fell to 8 yuan ($1.29) last year, down from 10 yuan ($1.60 previously, said Lin Rongguang.

“We need to produce new products with better quality but a lower price,” Lin said. “I know it will decrease our profit, but we have to survive first,” he said.

___

Wiseman reported from Washington. AP researcher Fu Ting contributed.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Activism

Retired Bay Area Journalist Finds Success in Paris with Black History Tours

In the late 90s, Stevenson finally realized her dream of living in Paris, now with her daughter. She started exploring the history of Africans in the city and would go on to teach others the same. Her business, which she named Black Paris Tours (BPT), received a significant boost when a family friend gave her a stack of cash and encouraged her to expand on the knowledge that she had only started to share with people she knew.

Published

on

Ricki Stevenson, Blacks in Paris. Courtesy photo.
Ricki Stevenson, Blacks in Paris. Courtesy photo.

By Post Staff

There were two things Oakland-born, East Palo Alto-raised Ricki Stevenson always dreamed of:

  1. Going to New York as a newscaster to tell the true story of Blacks in America.
  2. Living and working in Paris one day.

Her dreams of life in Paris began when she was three years old and her mother, a former professional dancer, took her to see Josephine Baker perform. She was 11 when her parents took her to the Stanford University campus to meet James Baldwin, who was speaking about his book, “The Fire Next Time.” Ricki says that’s when she knew she’d one day live in Paris, “the city of light!”

But before that would ever happen, she had a tumultuous career as a newscaster across the country that was inspired by her family’s history.

Stevenson recalls marching with Cesar Chavez as he fought for labor rights for farm workers in California.

“Are we Mexican too?” she asked her parents. “No, but we will fight for everyone’s human rights,” they responded to her.

Ironically, Ricki’s paternal family roots went back to Greenwood, Oklahoma, infamous for the 1921 bombing of Black Wall Street. A time when Black people had oil wells, banks, and a thriving business community.

This background would propel her into a 25-year journalism career that gave her the opportunity to interview greats like President Jimmy Carter, PLO leader Yassir Arafat, James Baldwin, Rev. Jesse Jackson, UN Ambassador Andrew Young, Miriam Makeba, and the leaders of South African liberation movements.

A job offer from KCBS radio brought her back to the Bay Area in the 1980s. Then came the switch to TV when she was hired as a Silicon Valley business reporter with KSTS TV, working at the first Black-owned television station in northern CA (created and owned by John Douglas). Along the way, Stevenson worked as an entertainment reporter with BET; coproduced, with her disc jockey brother Isaac, a Bay Area show called “Magic Number Video;” lived in Saudi Arabia; worked as an international travel reporter with News Travel Network; and worked at KRON TV a news anchor and talk show host.

In 1997, Stevenson realized her dream of living in Paris with her young daughter, Dedie. She started exploring the history of Africans in the city and would go on to teach others the same. Her business, which she named Black Paris Tours (BPT), received a significant boost when a family friend, Admiral Robert Toney put a chunk of money in her hand. He said, “Ricki, my wife and I have been coming to Paris for 20 years, but in just two days with you and Dedie, we’ve learned and seen more than we ever did before.”

Years after BPT took off, Ricki met Nawo Carol Crawford and Miguel Overton Guerra, who she recruited as senior scholar guides for Black Paris Tours.

Guerra says he is proud of his work with Black Paris Tours in that it provides a wealth of information about the rich legacy of African and African American history and influence in Paris and Europe.

“I tend to have a feeling for history always being a means of a reference point backwards … you start to understand the history, that it isn’t just the United States, that it began with African people,” Guerra says.

He said that it’s been a pleasure to watch people learn something they didn’t know before and to take them through the city to key points in Black history, like hangout spots for writers like Baldwin and Richard Wright, restaurants in the busiest parts of Paris, the home of Josephine Baker and so much more.

Although the tours are open to all, Guerra hopes that those of African descent from all over the world can embrace that they don’t have to just stay where they are because movies and media have portrayed cities like Paris to be only white, it’s multicultural and accepting to all.

“We’ve been here, and we’ve been there, going way back when. And we shouldn’t be considered or consider ourselves to be strangers in any place that we go to,” he said.

Stevenson notes they’ve had 150,000 people take their tour over the years, with notables like former NFL quarterback Colin Kaepernick, Smokey Robinson, Steve Harvey, Miriam Makeba, and more.

Friends and former media colleagues of Stevenson compliment the BPT crew on their knowledge of the city and their ability to always keep it interesting.

“He [Guerra] just had a deep, deep wealth of knowledge and he was constantly supplanting information with historical facts and the like. I love that it was demonstrating and showing how Black people have thrived in Paris or contributed to the culture in Paris,” Candice Francis said.

She toured in the summer of 2022 and stated that in the two weeks that they visited Paris, BPT was the highlight of her trip. She shared that she was proud of Stevenson and the life she’d managed to manifest and build for herself.

“Even if you’re visiting Paris for the tenth time, if you haven’t taken the tour, then by all means, take it,” Francis emphasized.

Magaly Muñoz, Gay Plair and Paul Cobb also contributed to this story. You can book your own adventure with Black Paris Tours at www.blackparistour.com.

Continue Reading

Activism

COMMENTARY: Will a Dictator’s Loss Change Trump’s Tune?

What’s happened in Syria has the potential of reshaping the politics of the entire Middle East. The U.S. can’t afford to sit back and do nothing. Now is the time to exert peaceful, diplomatic influence on how Syria maintains stability and goes forward with a new democracy.

Published

on

iStock
iStock.

By Emil Guillermo

In our polarized country, half of America can’t wait, while many of us still wonder, “where’s Kamala?”

I hope President-elect Trump — who famously said during the campaign that he’d be a dictator on day one — eats his words.

Dictators aren’t doing so well these days.

Last weekend, the dictator Bashar al-Assad was run out of Syria and sought exile with his puppet master/dictator Vladimir Putin of Russia. In just about two weeks, a coalition of rebels applied enough pressure to end a family regime in Syria that lasted 50 years.

al-Assad’s wealthy family dictatorship plundered Syria and ruled in terror.

It sounds all too familiar to Filipino Americans, many of whom came to the U.S. fleeing the Philippine dictator Ferdinand Marcos.

al-Assad’s end was different from the Filipinos who forged a peaceful People Power movement that chased the Marcos family to Hawaii where they sought refuge from their U.S. puppet handlers.

But as in Manila, there was cheering on the streets of Syria.  Men, women, and children. Christian, Muslims, different sects and ethnicities, all united against al-Assad.

al-Assad has been described as a genocidal narco-trafficking tyrant, whose friends were America’s biggest enemies, Iran, Hezbollah, and Russia, said Mouaz Moustafa, the executive director of the Syrian Emergency Task Force, on CNN.

Moustafa said it was amazing that there would be no more Russian airstrikes, no more al-Assad gulags torturing civilians. “To see good triumph over evil is an amazing thing,” he added.

But last weekend has some trickle down.

Consider that we are talking about al-Assad, the one Tulsi Gabbard consorted with and hyped to her colleagues when she was in Congress. Now Assad has been shamed into exile with his puppet master Russia, and Gabbard wants to be the U.S. director of national security? Given her wrongheaded judgment on al-Assad, can she be trusted with any national secrets?

It’s still not over in Syria, as now there will be a scramble to see what kind of governing democracy emerges.

Predictably, Donald Trump has said, “The United States should have nothing to do with it. This is not our fight. Let it play out. Do not get involved.”

Nouveau isolationism?

What’s happened in Syria has the potential of reshaping the politics of the entire Middle East. The U.S. can’t afford to sit back and do nothing. Now is the time to exert peaceful, diplomatic influence on how Syria maintains stability and goes forward with a new democracy.

Overall, the ouster of the dictator should give Trump pause.

If by nominating MAGA loyalists like Gabbard, Pete Hegseth and Kash Patel, Trump’s testing the evolution to strongman rule in the U.S., he should consider what happened before last weekend.

In South Korea, a weak president tried to declare martial law and was voted down by Parliament. That’s a faux strongman.

Let’s hope Trump learns a lesson from the week’s news.

The next president sets the tone for a politics that’s already toxic.

He needs to remember the joy in Syria this week when an autocrat was dumped in the name of freedom and democracy.

About the Author

Emil Guillermo is an award-winning Bay Area journalist. His commentaries are on YouTube.com/@emilamok1. Or join him at www.patreon.com/emilamok

Continue Reading

Black History

Biden acknowledged America’s ‘Original Sin of Slavery,’ Pledged Infrastructure Dollars and Long-Term Financial Aid

“Our people lie at the heart of a deep and profound connection that forever binds Africa and the United States together.  We remember the stolen men and women and children who were brought to our shores in chains and subjected to unimaginable cruelty,” Biden said in remarks at the National Museum of Slavery, which is built near the chapel where enslaved individuals were forcibly baptized before being sent to America. The museum was built on the property of Álvaro de Carvalho Matoso, one of the largest slave traders on the African coast. 

Published

on

President Biden met today with President João Lourenço to highlight the transformation of the U.S.-Angolan relationship and reaffirm our joint commitment to continue working together to address global challenges.
President Biden met with President João Lourenço to highlight the transformation of the U.S.-Angolan relationship and reaffirm our joint commitment to continue working together to address global challenges.

Will Biden’s aid for an above-the-ground Railroad help ease the pain for the African Americans’ Underground Railroad?

By Post Staff
And news dispatches from the Guardian, CNN and AP

When President Joe Biden went to Angola this week the purpose was ostensibly to advance the Lobito Corridor, an unfinished 800-mile railway project meant to facilitate the transfer of critical minerals from interior countries to western ports for exports.

But in a visit to the country’s slave museum, he acknowledged America’s dark past and its connection to Angola in the presence of three descendants of the first captives who arrived in Virginia from Angola in 1619.

The child of two of those captives — Antony and Isabella — was William Tucker, born around 1623. Three of his descendants were present when Biden spoke at the country’s slave museum and humbly acknowledged how the horrific history of slavery has connected the United States and Angola.

“While history can be hidden, it cannot and should not be erased. It should be faced. It’s our duty to face our history,” he said. “The good, the bad and the ugly. The whole truth. That’s what great nations do,” he said.

“It was the beginning of slavery in the United States. Cruel. Brutal. Dehumanizing. Our nation’s original sin. Original sin. One that’s haunted America and cast a long shadow ever since,” Biden spoke as he honored the Tucker family.

After introducing Wanda Tucker, Vincent Tucker and Carlita Tucker, he delivered a hopeful vision for the future in a major speech from the country that was the point of departure for millions of enslaved Africans.

(Wanda Tucker now serves as the faculty chair of psychology, philosophy and religious studies at Rio Salado College in Arizona.)

“Our people lie at the heart of a deep and profound connection that forever binds Africa and the United States together.  We remember the stolen men and women and children who were brought to our shores in chains and subjected to unimaginable cruelty,” Biden said in remarks at the National Museum of Slavery, which is built near the chapel where enslaved individuals were forcibly baptized before being sent to America.

The museum was built on the property of Álvaro de Carvalho Matoso, one of the largest slave traders on the African coast.

Biden told the attendees that he’s proud to be the first president to visit Angola and that he’s “deeply optimistic” about the future relationship between the nation and the US.

“The story of Angola and the United States holds a lesson for the world. Two nations with a shared history, an evil of human bondage,” Biden said. “Two nations on the opposite sides of the Cold War, the defining struggle of the late part of the 20th century. And now, two nations standing shoulder to shoulder working together every day. It’s a reminder that no nation need be permanently the adversary of another.”

Biden’s trip aimed to highlight U.S. investments in Angola and the continent in the face of deepening Chinese influence in the region, as Beijing has poured hundreds of billions of dollars into Africa through its Belt and Road Initiative.

Biden took a swipe at China’s moves, without calling out the country by name, and argued the US presents a better alternative.

“The United States understands how we invest in Africa is as important as how much we invest,” Biden said.

“In too many places, 10 years after the so-called investment was made, workers are still coming home on a dirt road and without electricity, a village without a school, a city without a hospital, a country under crushing debt. We seek a better way, transparent, high standard, open access to investment that protects workers and the rule of law and the environment. It can be done and will be done,” the president said.

Biden’s speech comes during what likely could be his last trip abroad as president and as he seeks to deepen relationships with Angola and other African nations at a time when China has made significant inroads in the continent with hundreds of billions of dollars of infrastructure investments, far outpacing the U.S.

During his remarks, Biden touted U.S. efforts to expand its relationships across Africa, including billions of dollars in investments in Angola.

He also announced over $1 billion in new US humanitarian assistance for Africans who have been displaced by historic droughts across the continent.

“But we know African leaders and citizens are seeking more than just aid. You seek investment.

So, the United States is expanding its relationships all across Africa,” Biden said, adding later: “Moving from patrons to partners.”

Ahead of his remarks, the president also met with Angolan leaders, including young people at the museum.

Biden started his day with a bilateral meeting with Angolan President João Manuel Gonçalves Lourenço at the presidential palace in Luanda.

The two men discussed trade and infrastructure, including the US and Europe’s investment in the railroad. They also discussed mutual security interests as Angola has played a key mediating role in the conflict in the eastern Democratic Republic of the Congo.

In November, Angola announced their Incremental Production Decree of fiscal terms designed to enhance the commercial viability of developing oil and gas fields. The decree enhances the commercial viability of developing fields in mature blocks, underexplored areas and stranded resources, while encouraging exploration near existing infrastructure. The US Railroad infrastructure investments could play a major role in enabling increased recovery from producing fields and extending the lifespan of critical infrastructure, the decree is set to generate billions in offshore investments, create jobs and drive economic growth, solidifying Angola’s position as a leading oil and gas producer.

Continue Reading

Subscribe to receive news and updates from the Oakland Post

* indicates required

CHECK OUT THE LATEST ISSUE OF THE OAKLAND POST

ADVERTISEMENT

WORK FROM HOME

Home-based business with potential monthly income of $10K+ per month. A proven training system and website provided to maximize business effectiveness. Perfect job to earn side and primary income. Contact Lynne for more details: Lynne4npusa@gmail.com 800-334-0540

Facebook

Trending

Copyright ©2021 Post News Group, Inc. All Rights Reserved.