{"id":1450942,"date":"2024-01-16T17:00:00","date_gmt":"2024-01-16T22:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1450942"},"modified":"2024-01-16T17:00:00","modified_gmt":"2024-01-16T22:00:00","slug":"china-premier-claims-economy-grew-at-estimated-5-2-in-2023-ironically-mentions-trust-deficit","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/china-premier-claims-economy-grew-at-estimated-5-2-in-2023-ironically-mentions-trust-deficit\/1450942\/","title":{"rendered":"China Premier Claims Economy Grew At “Estimated” 5.2% In 2023, Ironically Mentions “Trust Deficit”"},"content":{"rendered":"

China Premier Claims Economy Grew At “Estimated” 5.2% In 2023, Ironically Mentions “Trust Deficit”<\/span><\/p>\n

\n

It’s another Christmas miracle…<\/p>\n

During a speech in Davos, Chinese Premier Li Qiang ‘leaked’ that China\u2019s economy grew an “estimated” 5.2% last year<\/strong>, beating the official target of 5% (its lowest in decades).<\/strong><\/p>\n

<\/a><\/strong><\/p>\n

We say ‘leaked’ because this data was supposed to be officially released tonight, prompting anger and disillusionment from some:<\/p>\n

\u201cChina used to be a place where you\u2019d know when this sort of thing would be published, but that has changed radically,\u201d <\/strong>said Alicia Garc\u00eda-Herrero, chief Asia-Pacific economist at Natixis<\/a>, who described the decision to announce the figure early as \u201cbewildering\u201d.<\/strong><\/em><\/p>\n

A bigger problem for liquidity-hypers was that Li explicitly pointed out that China\u2019s growth rate last year – a rise from the figure of 3% in 2022 when the country was hit by its arcane Zero-COVID policies – was achieved without resorting to \u201cmassive stimulus\u201d and the economy was making \u201csteady progress\u201d.<\/p>\n

\u201cWe did not seek short-term growth while accumulating long-term risks, rather we focused on strengthening the internal drivers,\u201d <\/strong>he said.<\/em><\/p>\n

\u201cJust as a healthy person often has a strong immune system, the Chinese economy can handle ups and downs in its performance. The overall trend of long-term growth will not change.\u201d<\/em><\/p>\n

Ironically, Bloomberg reported this morning that China is considering 1 trillion yuan ($139 billion) of new debt issuance<\/strong> under a so-called special sovereign bond plan, only the fourth such sale in the past 26 years, as authorities seek more money to finance intensifying efforts to shore up the world\u2019s second-largest economy.<\/p>\n

But that news is old and regurgitated…<\/a><\/strong><\/p>\n

<\/a><\/p>\n

And given Li’s comments, this is not something traders should expect to be systemic liquidity provision from Beijing.<\/p>\n

Li also urged greater co-ordination between countries on macroeconomic policies, <\/strong>a reference to efforts by the US and its allies to reduce the reliance of their supply chains on China.<\/p>\n

Do you believe in miracles?<\/strong><\/h2>\n

The Chinese equity market doesn’t…<\/p>\n

<\/a><\/p>\n

And Chinese macro-economic data certainly hasn’t been supportive of this expectation…<\/p>\n

<\/a><\/p>\n

Given the ‘surprise’ economic growth, we couldn’t help but giggle at the irony of Li’s shot across the US bow with regard “trust deficits.”<\/strong><\/em><\/p>\n

‘Trust’ in data, politicians, and the rule of law appear in short-supply across the globe.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 01\/16\/2024 – 12:00<\/span><\/p>\n

\u200bRead More<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

China Premier Claims Economy Grew At “Estimated” 5.2% In 2023, Ironically Mentions “Trust Deficit” It’s another Christmas miracle… During a speech in Davos, Chinese Premier…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1450942","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1450942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1450942"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1450942\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1450942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1450942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1450942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}