Wednesday, January 21, 2015
China's GDP Growth Slows to 7.5% in Second Quarter
http://www.wsj.com/articles/SB10001424127887323394504578606542026177274 DUE 26 JAN 2015. What is the reason for China's slowing growth?? How will this affect the US economy? What percentage of US GDP is attributed to consumption? Why is China's transition from socialist to capitalist a difficult one?
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China's slowing growth can be attributed to continuously slowing industrial output and investment. Both are two key growth factors. This will affect the U.S. economy because China is trying to restrain lending so the U.S. would not be able to borrow as much money from China. China also wants to gear its economy towards consumer spending rather than investment. This will affect the U.S. because we have many factories there and China may not want us to built more of them because that would be contributing to the investment sector of their economy instead of consumer spending.
ReplyDeleteIn the U.S. nearly 70% of GDP is attributed to personal consumption compared to China which can attribute around 50% of its GDP to consumption, a considerable difference. China's transition from socialist to capitalist is a difficult one because the transition is lengthy and complicated. In transitioning, China needs to establish its new system by instituting practices for property rights, inflation, banking, and its overall ideology. Due to its enormous size, China's transition is especially difficult and it has been a gradual one. China's economy has been moving farther away from government control but at its own pace. Eventually China will finish its transition but it is a long, slow process.
China's GDP growth is slowing down and has decrease to 7.5% in the second quarter. The reason for this decline is due to the slow growth of industrial output and investment in June. This will weigh on market expectations for growth in the second half. Though, overall, economic conditions in the first half are stable. The governments target growth for the year is 7.5%.
ReplyDeleteThis affects the United States because it is the worlds second largest economy and it threatens to send ripples around the region and the world. The immediate reaction from the markets was muted. The demand for the U.S. is sluggish with exports contracting 3.1% year-over-year in June. That is the percentage of U.S. GDP that is attributed to consumption. The reason why it is difficult for China to transition from a socialist to capitalist government is because China's labor markets have so far remained robust, with demand for workers continuing to outstrip supply in the second quarter.
The reasons for China's slow GDP growth is because of the slowness from industrial output and investment. Both of these reasons affect the interaction between China and the United States because of the economic ties between both countries. The US has numerous of working factories in China, which China somewhat falls into the slowness of industrial output.The ties between the US and China illustrates that many US factories have been established in China and that if the GDP for China does not grow quicker the economy will soon feel consequences in both countries.
ReplyDeleteThe GDP for the US can be seen through its economic demand which is 3.1% a year. When considering both countries, the US allocates about 70% of its GDP to consumption while China uses 50%. The transition for China from a socialist to a capitalist society is quite complicated when considering the size of the country and the economic status it currently is in. The size of the country will make it difficult for China to establish a capitalistic society and the economic status is primarily focused on fixing their labor markets.
A reason for China's slow grows is the decrease in industrial output and investment. Its GDP has decreased to 7.5% since last June. This decrease in productivity will have an impact on the economy of the United States because it will not be able to borrow as much money from China as it normally could. China is trying to restrain loaning money to the US because their economy is not doing too well. The United States also currently has many factories there which would be impacted by China's economy. China would rather spend money on consumer spending rather than investments.
ReplyDeleteChina attributes about 50% of its GDP towards personal consumption, while the US spends about 70%, a difference of 20%. Recently, China has been trying to transition from a socialist government to a capitalist society. This change has been very complicated and lengthy. The reason for this is because of China's enormous size, both the population and land area. China will need to establish the new system by institution practices for banking, inflation, and its ideology. This change is currently happening albeit slowly.
The reason for China's slow growth is the decline in industrial output and investment within the country around June. This places a burden for the country's market expectations. This affects the U.S economy by taking away from investment and adding more to consumer spending. China has less of an incentive to focus on lending money to the U.S because Chinese leaders have been recognizing the limits of credit and investment in supporting the economy.
ReplyDeleteThe percentage of U.S GDP that is attributed towards consumption is at 69% as of November 2014, compared the China's 50%. We can see there that China is slowing moving from a socialist society to a more capitalistic society with more focus on consumers. It will obviously be a long process, because while Chinese leaders push for more economic reforms, they have to watch out for their indicators (such as the employment rate) not falling below their limits.
China's GDP growth is slowing because key growth drivers are continuing to lose momentum. According to this article, industrial output and investment are losing steam, and as a result market sentiment is hindered. This reduction in growth will affect the entire world, including the U.S. economy. The article includes two examples of the ripple effects that may occur. One possible negative outcome may occur in Chilean copper mines. If demand for raw materials in China slows, the Chilean production plants will make less money. Similar effects may occur in the U.S. For example, if Chinese goods in America become more expensive due to decreased demand, then U.S. consumers may lose disposable income and the U.S. economy may faulter. These effects will be magnified in the U.S. because 70% of the American GDP is consumption.
ReplyDeleteChina's transition from a socialist society to capitalist society is difficult because the current administration has too much power. Sentiment in China is still fixated on a strong central government to take care of the people. As long as the government can impact the Chinese markets to the degree that they can today, China will always have trouble transitioning to a capitalist economy.
The reason for China's slowed GDP growth is due to slowed industrial output and investment. China's GDP growth decreased from 7.7% to 7.5%. This will affect the US in a couple of ways. One such way is that China wants to stop giving out as many loans as they have been. The US has been loaned money by China several times in the past. Now the US might not be able to borrow as much money as it has in the past. Another way in which this can affect the US is that the US relies on several outputs from factories in China. China wants to shift its focus from industrial outputs and investments to consumption in an attempt to stimulate GDP growth. While China only attributes about 50% of their GDP to consumption, the US attributes about 70% of their GDP to consumption. China's transition from socialist to capitalist is so difficult due to its large size, its economic status, and its current administration and structure. In order to transition to capitalism, China has to establish new institutions for banking, housing, and labor. The government will also have to change its ideologies to better reflect a capitalist government.
ReplyDeleteChina's slow GDP growth is due to the slowness from industrial output and investment. These reasons affect the interaction between China and the United States because of the economic ties between both countries. The US has a bunch of working factories in China, which China somewhat falls into the slowness of industrial output.The ties between the US and China illustrates that many US factories have been established in China and that if the GDP for China does not grow quicker the economy will soon feel consequences in both countries.
ReplyDeleteThe GDP for the US can be noticed through its economic demand which is 3.1% a year. When considering both countries, the US allocates about 70% of its GDP to consumption while China uses 50%. The transition for China from a socialist to a capitalist society is quite complicated when considering the size of the country and the economic status it currently is in. Because of China's large size, it makes even more difficult for them.
The reason for China’s slowing growth is the decline in industrial output and investment. China relies too heavily on investment and has placed great emphasis on exports over consumption. China saw retail sales rise to 13.3% in June from 12.9% in May. This increase in sales signals that China may shift towards an economy where consumption drives growth. The U.S. economy is affected by this because China may lose its place as the U.S. supplier of cheap labor as it moves away from manufacturing. China will also be more reluctant to loan money to the U.S.
ReplyDelete69% of US GDP is attributed to consumption. China’s transition from socialist society to a capitalistic society will be difficult as it must establish a system of property rights, banking systems, and foster a capitalistic ideology. It is essential to have an understanding of private property. While China aims to focus on boosting consumption, slow income growth has got in the way. China began the mid-twentieth century as an agrarian-based economy and in half a century had one of the fasted-growing economies in the world. China is on the right path, but it will take a couple decades to see a prosperous China.
The main reason for China’s slowing growth is mainly because of the continuous slowing of industrial output and investment. In comparison to last year, China’s GDP has dropped to 7.5 % when compared against last years GDP. This will affect the US economy because this means that the US cannot depend highly upon the fragile market of China. In order to improve their economic situation China is moving away from reliance on investment and more toward consumer spending and eventual growth. Also, China is trying to restrain lending meaning that the US cannot borrow as much as money as before.
ReplyDeleteAbout 70% of the US GDP is attributed towards personal consumption while China attributes about 50% of its GDP to consumption. China’s transition from socialist to capitalist is a difficult one because it is quite complicated and lengthy. This primarily has to do with how large the country is and how heavily influenced the country is within socialistic views. In order to facilitate the transition China must establish a new system by setting forth practices of property rights, banking, and an overall capitalistic outlook. With the Chinese economy moving farther away from government control the country can expect beneficial changes within the near future. But for now the changes may come quite gradually.
The reason for China's slowing growth is its decline in industrial output and investment. The slowing of industrial output and investment “will weigh on market expectations for growth in the second half.” This will affect the US economy because “An extended deceleration in growth in the world's second-largest economy threatens to send ripples around the region and the world.” Since the “Shanghai market and Hong Kong's Hang Seng Index” went up slightly, the Australian dollar strengthened a bit over the US dollar. The percentage of US GDP that is attributed to consumption is about 70%, meanwhile in China about 50% of the GDP is attributed to consumption. China's transition from socialist to capitalist a difficult one because of various reasons. One would be China’s large size and population. Another would be the current government, whose current ideologies fall more to the socialist side. China would also have to create new banking, labor, and housing institutions, which is a lengthy process.
ReplyDeleteThe reasons for China’s slowing growth are that industrial output and investment have slowed. These factors will cause China to lose momentum. China is the world’s second-largest economy and therefore this downturn will “send ripples around the region and world” including the United States. However, retail sales ticked up to 13.3% which could suggest that consumption could play a slightly expanding role in supporting growth going into the second half of the year. This will affect the United States because China is stopping their investments so they are not going to lend as much money to the US anymore. China is also going to stop building infrastructure to support exports so US companies that rely on Chinese workers and factories will have to cut their supply.
ReplyDeleteNearly %70 of US GDP is attributed to consumption while %50 of the GDP in China is accountable for consumption. China’s labor market has remained “robust” with demand for workers continuing to outstrip supply in the second quarter. The slowdown in growth for China is attributable to international and domestic factors. China’s transition from socialist to capitalist is difficult because it has so much people and a government that promotes slow growth. It has to build up from the bottom with things like property rights and banking which will allow for progress but at a slow rate.
The reason for China's slow growth is the decline in industrial output and investment within the country. China's GDP growth decreased from 7.7% to 7.5%. This reduction in growth will affect the entire world, including the U.S. economy. This will affect the United States because China is stopping their investments so therefore, they are not going to be able lend as much money to the US. In the U.S. nearly 70% of GDP is attributed to personal consumption compared to China which attributed around 50% of its GDP to consumption. China's transition from socialist to capitalist a difficult one because of various reasons. The main reason is its sheer size of the country and its population. China would also have to create new banking, labor, and housing institutions, which will take some time.
ReplyDeleteGDP growth has begun to slow down because of slowing industrial output and investments. In the United States of America almost 70% of GDP is attributed to personal consumption where as China only about 50% of the GDP attributed From consumption. Because of China's falling GDP they will be less interested in lending money to the US. China might also might Focus on an economy where consumption generates growth. If this happens at US will be directly affected because it will lose its source of cheap labor. The countries large size will make it's transition to capitalism much harder. Also Chinese government is too powerful, as long as the Chinese government can manipulate the market as he can in the current State, a capitalist market is nearly impossible.
ReplyDeleteThe reasons for China's slow GDP growth is because of the slowness from industrial output and investment. Both of these reasons affect the interaction between China and the United States because of the economic ties between both countries. China is trying to restrain loaning money to the US because their economy is not doing too well. The United States also currently has many factories there which would be impacted by China's economy. China would rather spend money on consumer spending rather than investments.
ReplyDeleteThe percentage of U.S GDP that is attributed towards consumption is at 69% as of November 2014, compared the China's 50%. We can see there that China is slowing moving from a socialist society to a more capitalistic society with more focus on consumers. Due to its enormous size, China's transition is especially difficult and it has been a gradual one. China's economy has been moving farther away from government control but at its own pace. China has to establish new institutions for banking, housing, and labor. The government will also have to change its ideologies to better reflect a capitalist government.
The reason for China’s slowing growth is due to its slow industrial investment and output where it has shown a decrease by 7.5% in the second quarter. This shall affect the U.S. economy mainly because China has tried to prevent its country from lending out more money to the U.S. Also, China wants to change its economy by putting their resources into consumer spending instead of investing in other countries. By doing this, China will affect the U.S. since the U.S. has multiple industries and factories situated there and China does not want the U.S. to build any more since that is considered putting U.S. resources into the investment division rather than consumer spending.
ReplyDeleteThe U.S. GDP consumption is around 70% while China’s GDP consumption uses around only 50%. Meanwhile, China’s transition from a socialist society to a capitalist society is seen to be quite a struggle when taking in consideration of China’s country size and how well the economy is doing. China’s country size gives China a difficult time in making a more capitalistic society while its economy is more focused on fixing labor markets instead of consumer spending.
Why is China's transition from socialist to capitalist a difficult one?
ReplyDeleteThe reason for China's slowing growth are a decreasing in industrial output and investment which are key pieces to growth in an economy. This will affect the US because we depend on China for the manufacturing of many goods in the US so if their industrial output is decreasing we may have less goods available on the market. Also since China has one of the largest economies in the world can send ripples to basically every country in the world, including the US. Nearly 70% of US GDP is attributed to this consumption, while China attributes only 50%. China's transition from Socialist to Capitalist is a difficult transition for various reasons with the main one being China's humongous size. Also, the government in China falls more on the socialist side so they are making the transition very difficult and they'd have to make new banking, housing and labor institutions for the transition.
China’s slowing growth seems to be rooted from a steadily slowing industrial output and investment. This can affect the US easily because it is the world’s second largest economy and the US having close economic ties with China makes the risk higher.
ReplyDeleteAs for the US GDP attributed to consumption, it is 70%. China’s is 50% and is currently working on transitioning to increase it. Although this is a difficult due to the large area and amount of people that must switch to this more capitalist economy. It will probably take a long time and be somewhat difficult due to this.
The gradual slowing of China's economy is mainly due to the reduction in industrial investment and output which has correlated to a 7.5% decrease in GDP growth. This creates a snowball effect in the world economy especially for the United States mainly because the Chinese economy is not growing as fast its tactic to fix this problem is to lend less money out (protect currency) and reinvest the money not in other countries but in consumer spending.
ReplyDeleteThe difference between the GDP consumption is vast. The U.S. consumption tops 70% while China uses around 50%. That is a 20% difference so reliance is particularly more evident in the US economy then in the Chinese in terms of how the economies effect each other. Due to sheer size of the Chinese economy and the power that the government has over it. Therefore the transition is already against the strong foundation for a strong central government that is determined on focusing on priorotizing the labor markets.
The transition to a capitalist rather socialist foundation is particularly hard because the market is already been following one that it based on socialist practice like a strong central government regulating the economy. IF the government is so fixated on controllling the economy and having no random free path then any transition would be difficult and we haven't even taken in consideration the size of the economy let alone what it would take to transform it.
DeleteThe main reason for the slowing of GDP growth in China is the slowing down industrial output and investments. The US will be greatly impacted due to Chinese investments in the American economy as well as American investments in China would be effected. The percentage of U.S GDP that is attributed towards consumption is at 69%, compared to China's 50%. China's transition to a capitalist society has been rough due to a multitude factors. The first hurdle is that due to large size of China the process will have to be very gradual. The Chinese government also is reluctant to relinquish power over the economy which is making investors wary over entering the market.
ReplyDeleteChina's GDP continues to plummet and the reason why this is occurring is the slowing down of their industrial output and investments. This affects the United states highly because our countries' economies are closely linked. For example, China is already transitioning from spending a lot of time in investments and things in that route and moving towards boosting their economy using consumer spending. The U.S. gets a lot of our revenue through the investments and our factories being set up over there. If China does continue the decrease in investments and increase in consumer spending then the U.S. will take a hit. Another major reason for the U.S. getting majorly effected is China will not be sending us as much money anymore, which is a big part of our economical gains.
ReplyDelete70% of the U.S's GDP is attributed to consumption, while China's is only 50%. China's transition from a socialist to a capitalist economy is difficult because of how tedious the process is; and the country's size makes the process even harder. To transition, they would need to make new banking, labor and housing institutions, which would also take a gradual and longer time.
ReplyDeleteThe reason for China’s slowing economic growth lies in its decreasing industrial output. As a consequence, China’s investment pool has also decelerated. Without these two essential growth factors, China has slowed to 7.5% GDP in the second quarter. The U.S economy will also suffer because, since China has reduced its potential investments, the country also has restrained its lending of money. Because China wants to move towards consumer spending, this means less factories that businesses in the U.S can use to outsource – less factories means less in the investment pool.
For the United States, roughly 70% of GDP comes from consumption, while China has 50% GDP from consumption. The significant difference comes from where China has found its best gains in increasing GDP – for the past years, that’s been the investment sector and production; now, it’s flipping the table. In doing this, there’s also a change from socialist to capitalist that is difficult and lengthy. By changing its system, this also means changing property rights, regulating inflation, converting to an entirely new political regime, and changing the banking system – to name a few. China is also one of the most populated countries, and a ripple effect of capitalism will take a while to spread completely.
China's slowing growth was caused by slowed industrial output and investment. This caused China's GDP growth for the quarter to drop to around 7.5%. This reduction in growth will affect the entire world since China's goods are used around the world. If China's production declines, so does its supply of goods to export to countries like the US. The drop does not appear to be too bad and the country is stable. China's government does not add too many stimulus measures as long as growth rate isn't too low and inflation isn't too high. Nearly 70% of the US GDP is attributed to China's consumption so China's consumption patterns have a huge effect on the US. China is undergoing a difficult transition from a socialist to a capitalist economy. China's economy is extremely dependent on investment due to their socialist background. In order to become more capitalist, they need to shift to consumer-driven growth. The Chinese government is trying to resist stimulus packages and further investment to help promote this transition but the risks of the economy failing tempts the Chinese government to intervene. They are trying to resist as long as factors aren't dangerously high or low but it still creates a difficult transition from socialist to capitalist.
ReplyDeleteThe reason for China’s slowed economic growth is the result of a declining industrial output. GDP has declined to 7.5%. The U.S economy suffers from China’s regressive economy, as China has opted to reduce the amount of loans they are giving. The United States relies on Chinese outputs from various factories and industries. Now China wishes to focus more on consumer spending within its borders to promote a rising economy.
ReplyDeleteThis shift in focus will greatly affect the U.S economy, as about 70% of consumption comes from the U.S, while China attributes only 50%. Now attempting to promote consumer consumption within its borders, they will have to shift towards more capitalistic techniques. They will have to start regulating inflation, instill property rights, and start new systems for banking. Due to China’s dense population and the lengthy amount of time China has spent in its socialist government, it will be fairly difficult for the nation to transition to a capitalist country.
China's slowing growth is due to the decrease in two key growth factors, industrial output and investment. This affects the U.S. economy because as their economy slows, they focus more on consumer spending and less on investments on the U.S. economy. In other words, they are no longer lending money to us.U.S. factories and other industries outsourced in China will also suffer from the slow economic growth. 70% of the GDP in the U.S. is dedicated to consumption. Vhina has a hard time switch from a socialist to a capitalist society because of the strict and tight command that the communist government still has on its people.
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ReplyDeleteChina's slow economic growth can be attributed to continuously slowing industrial output and investment. China features the world's second largest economy, threatening to send ripples around the region and the world. This will affect the US because it the Chinese will minimize lending amounts. Additionally, China is going to stop building infrastructure to support exports so US companies relying on Chinese workers and factories will be forced to cut their supply.
ReplyDeleteChina wants to shift its focus from industrial outputs and investments to consumption in an attempt to stimulate GDP growth. While China only attributes about 50% of their GDP to consumption, the US attributes about 70% of their GDP to consumption. China's transition to a capitalist economy is difficult because of its large population and land size. China will need to establish the new system by institution practices for banking, inflation, and its ideology. China will need to establish the new system by institution practices for banking, inflation, and its ideology in order to successfully complete its transition.
The main reasoning behind the decrease in China’s economy is the reduction in industrial investment and output which has correlated to a 7.5% decrease in GDP growth. A consequence is a severing interaction between China and the United States because of the economic ties between both countries. China is trying to restrain loaning money to the US because their economy is not doing too well. The United States also currently has many factories there which would be impacted by China's economy. China would rather spend money on consumer spending rather than investments. About half of China’s GDP can be accounted towards personal consumption. With an increase of 20 percent, the United States numbers are at 70%. This may be because China has been trying to switch from a socialist society to a capitalist society, which has become a lengthy and drawn out process.
ReplyDeleteChina's economy is experiencing a slow down, droping from 7.7% increase this time last year to 7.5% this year. This drop is attributed to a drop in industrial investments and outputs, amongst other factors. This shrinking Chinese economy already has effects in the world economy, but more can be expected in the future. The united States outsources production to China very often, so this falling Chinese economy will be felt to its biggest economic rival over seas. However, it is noted that the reliance on China for industrial work has been decreasing at a rate of 3.1% the past few years, indicating that the Chinese effects might not be felt as strongly as an individual would originally think. The Chinese opperate on a very socialist government, and the movement from what they have to a more capitalist goverment will be difficult, as demonstrated by their comparatively low consumption GDP, the United States consumption GDP is at around 70%.
ReplyDeleteChinas slowing growth is due to the decrease in indistrial investments and output. With their economy doing bad, we can not get loans from China which is a problem. in addition, our trade between us two will be hindered seeing as they are not in good shape. China attributes 50% of their GDP to consumption while the US attributes 70%. China is switching to a capitalist country which is making it hard for them to adjust.
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