Will the Chinese Economy be Caught in Stagflation?

Normally speaking,to tell whether an economy will run into stagflation we will see whether the inf lation rate exceeds the economic growth rate.The author thinks that China's price rise speed still fall behind the economic growth rate by a certain margin,which will not lead to economic stagflation.

A Balancing Act

China has stressed that it will continue with reforms and strengthen the structure of its supply front to increase the quality and efficiency of the sup- ply system and provide a growth impetus for sustainable economic development. Tan Hao-jun , a financial commentator for Securities Times, the only official newspaper to release news on Chinese listed companies, says China should strike a balance between reforming both supply and demand sides. Excerpts of his thoughts follow：

Foreign Companies leaving China Is a test For the Economy

Media reports said that Japanese watch maker Citizen shut down its factory in Guangzhou, south China＇s Guangdong Province, and dismissed more than 1,000 employees right before the Chinese Lunar New Year, which fell on February 19 this year. In January Microsoft announced it will formally shut down manufacturing plants in Beijing and Dongguan. Guangdong Province, in the first quarter of 2015 and will move Nokia manufacturing from China to Viet Nam. A total of 9,000 employees w dismissed in the wake of the shutdown Beijing and Dongguan factories. be of

A Supply and Demand Balancing Act

President Xi Jinping stressed that China should reform and strengthen the structure of its sup- ply front in order to increase the quality and efficiency of the supply system and provide a growth impetus for sustainable economic de- velopment. while speaking at the 1 lth meeting of the Central Leading Group for Financial and Economic Affairs on November 11. This lays new groundwork for the development of the 13th Five-Year Plan （2016-20） period.

Trust and Credibility: Crucial for Private Investment Growth

An all-star roster of high-level government offcials descended on Beijing for a meeting chaired by Premier Li Keqiang on July 18. Senior officials from the State Council (China’s cabinet), provincial-level government heads and leaders of ministries and departments gathered for a sole purpose: to study how to promote the sound development of private investment.

Trade Figures Indicate a Resumption Of Stable Economic Growth

According to figures released by the General Administration of Customs,in yuan-denominated terms,China’s foreign trade decreased by 0.6 percent year on year to2.05 trillion yuan（$300.15 billion）in October.Of the total,exports declined by 3.2 percent year on year to 1.19 trillion yuan（$174.23 billion）,while imports rose by 3.2 percent year on year to 860.6 billion yuan（$126 billion）.This has resulted in a 325.25-billion-yuan（$47.62 billion） trade surplus in October.

How Should China Cope With U.S. Interest Rate Rise?

A May 25 Bloomberg report said that Chinese officials plan to ask their American counterparts during the upcoming eighth round of the China-U.S.Strategic and Economic Dialogue about the chance of a Federal Reserve(Fed)interest rate increase in June.Chinese central bank offcials said later that day that the report was not correct.However,there are still signs that the Fed is likely to raise interest rates this month.

Creating a Fair Market to Stimulate Private Investment

The Supreme People＇s Court, China＇s highest court, recently announced that financial institutions which impose un-necessany charges or extremely hish interest rates on loans will not be supported in related disputes, stressing equal protection of the non- state economy to boost private investment.

Shoring Up Urbanization With a Dose of Development

The State Council recently issued The National Territorial Plan（2016-30）,which states that at present,China focuses more on the speed of urbanization rather than its quality.As a case in point,the total area built for urbanization purposes increased by 113percent from 2000 to 2015—almost double the 59-percent growth rate seen in urban populations.

Better Property Protection Pushes SOE Reforms

Aguideline on better protection of property rights was jointly issued by the Central Committee of the Communist Paf China(CPC)and the State Council in late November 2016.As the first state-level document regarding the issue,it particularly emphasizes equal protection of all kinds of property rights in accordance with the law.