The growth data from the statistics office in Beijing are surprisingly strong. Nevertheless, the situation in the second largest economy remains tense, as other figures from the authority show.
Beijing - According to official information, China's economy started the year with surprisingly strong growth. As the statistics office announced on Tuesday, the world's second largest economy behind the USA grew by 5.3 percent in the first quarter compared to the first three months of the previous year. Experts had expected lower growth. In the statement, the statistics office spoke of a “good start” to the year.
In contrast, other important economic data, which was also published on Tuesday, fell short of expectations. According to the statistics office, industrial production rose by 4.5 percent year-on-year in March, slower than some analysts had hoped. Retail sales were also below forecasts, with an increase of 3.1 percent.
The Chinese government is aiming for economic growth of around five percent this year - an ambitious goal given the situation in the People's Republic, which is still under the influence of the real estate crisis and a lack of consumer enthusiasm.
Foreign trade figures only showed on Friday that the recovery of the export-driven economy is on shaky ground. Exports in particular fell by 7.5 percent in US dollars compared to the same month last year, as the customs authorities announced on Friday. Imports fell by 1.9 percent. Experts had expected a smaller decline in exports and even an increase in imports.
Chips and electric cars
According to Maximilian Butek, executive board member of the German Chamber of Commerce in East China, the relatively strong growth in China can also be attributed to the expansion of new industries into which a lot of money is flowing.
“In China, the focus is on expanding the industry, particularly for products such as chips and electric vehicles. This is now reflected in the numbers,” said Butek. A lot is being invested, but consumer confidence remains weak. “It is questionable to what extent German companies can benefit from this type of growth.”
Before Chancellor Olaf Scholz's current visit to China, the chamber drew attention to the problems faced by German companies in the People's Republic. In a survey, around two thirds of the German companies operating there complained about unfair competition.
According to the survey, companies face disadvantages, for example due to more difficult market access. In addition, the government, local authorities and public tenders are more difficult for companies to access. Almost all respondents also saw the increased competition with Chinese companies as having an impact on their business and cited increased cost pressure, reduced profits and lower market shares as the main consequences. dpa