Chinese economy may have peaked. Outlook quoted China’s National Bureau of Statistics: “2007 may have seen the peak of economic development for this round. From this year, economy will gradually slow down.” Another government thinktank warns, “Prevention of economic downturn is the problem we should watch out for, now and in the near future.”
According to National Bureau of Statitics on June 12, the CPI for May was down to 7.7% while the PPI for May was up to 8.2% for the fifth consecutive months. It was the first time since February 2007 that PPI was increasing higher than CPI. Unsettling factors include the U.S. policies to provent recession, particularly the lowering of interest rates, states Outlook News Weekly, a Xinhua journal, on June 14.
Source: Outlook News Weekly, June 14, 2008