China’s Economy Continues Rebound With 4.9% Growth In Third Quarter

China’s GDP grew 4.9% in the third quarter compared to the same time last year, the country’s National Bureau of Statistics said Monday, as the economic superpower continues to rebound after the coronavirus pandemic.  

Key Facts

That growth was fueled by strong retail sales and industrial production, the government said. 

China’s exports rose 9.9% last month while imports soared 13.2%—two more strong signs of recovery. 

China’s is the only major economy that is expected to grow in 2020, according to the International Monetary Fund, which is forecasting 1.9% growth for the year. 

Crucial Quote 

Despite robust growth at home, the Chinese government also noted Monday that the global environment remains “complicated and severe” and that the country is under “great pressure” to prevent any further outbreaks of the virus. 

Key Background

China’s economy shrank 6.8% in the first quarter—its worst contraction in 40 years—as the government shut down nearly all activity in parts of the country to prevent the spread of the coronavirus. In the second quarter, growth bounced back to 3.2% after factories reopened and the government poured billions of dollars in stimulus measures back into the economy. 

Tangent

Economists expect the United States to see growth in the third quarter, too, but that growth is likely to be limited in the fourth quarter if further stimulus measures from the federal government are delayed until 2021. 

Further Reading

Economy Shrank At Historic 33% Annual Rate In Second Quarter—But That’s Not The Whole Story (Forbes)

China’s Exports Surged 9.5% In August Despite Escalating Tensions With The United States (Forbes)

Europe Breaks Record For Weekly Coronavirus Cases As Countries Enforce New Lockdowns (Forbes) Follow me on Twitter. Send me a secure tip

Sarah Hansen

Sarah Hansen

I’m a breaking news reporter for Forbes focusing on economic policy and capital markets. I completed my master’s degree in business and economic reporting at New York University. Before becoming a journalist, I worked as a paralegal specializing in corporate compliance

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China Is Expanding Its Digital Currency Pilot To Two New Cities

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China has outlined plans for further tests of its digital currency initiative, now aiming for trials in areas including Beijing and Hong Kong.

A digital renminbi trial will start in some of the country’s most developed regions, the Commerce Ministry said in an announcement on Friday that didn’t provide a timeline. Tests will take place in the area of northern China encompassing Beijing, coastal city Tianjin and Hebei Province; the city cluster in the Yangtze River Delta region including Shanghai; and the Greater Bay Area in the Pearl River Delta Region including Shenzhen, Hong Kong and Macau.

Cities in central and western China may also undertake the trials if they meet certain conditions, the ministry said, without specifying what they were.The exercise will kick off in Shenzhen, Chengdu, Suzhou, Xiong’an and sites for the 2022 Winter Olympics and will then expand to other regions, the announcement said.

The digital currency trials are part of a broader package of initiatives Beijing rolled out on Friday to stimulate innovation and encourage further opening of its service sector. The same day, the country reported steady industrial growth in July, though retail sales continued to show weakness.

China has been ramping up plans and testing for the People’s Bank of China digital currency in recent months, an initiative that some see as a threat to cryptocurrencies like Bitcoin and even potentially someday to the U.S. dollar’s dominance.

In April, Bloomberg News reported that state-owned Chinese banks were conducting internal, hypothetical-use tests of the currency. Last month, Softbank Group Corp.-backed ride-hailing company Didi Chuxing said it was working with the PBOC on tests of the currency and Bloomberg reported that Tencent Holdings Ltd.-backed food delivery giant Meituan Dianping was planning tests on its platforms as well.

More must-read international coverage from Fortune: Masks, small classes, and outdoor lessons: How 5 countries in Europe are reopening schools The U.S. wanted to starve Huawei of chips. It’s working Big Tech defends H-1B visas against Trump’s “un-American” crackdown “Irreplaceable”: U.S. WeChat users struggle to imagine life without the app Trump wants to ban .Want to find the next $10-billion-plus takeover target? Watch executive stock sales carefully…..

Read More: Fortune

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