Last night we learned that China`s industrial production grew 7.6% in June, faster than a 6.5% rise in the prior two months (tradingeconomics).
and retail sales jumped 11% in June (May plus 10.7% tradingeconomics). It was the fastest increase in retail sales since December 2015.
The numbers show that China`s economy is increasingly driven by domestic demand & retail sales and loosening her dependency from exports. China is transforming into a modern service economy like the US, fostered by the
technological progress (E-Commerce, Fintech). China´s ascent is also driven by the rapid urbanization. People are flooding into the big cites where the productivity is much higher than in rural areas. The huge country now has more than 100 cities of over 1 million residents, a number
that is likely to double in the next decade, writes the Guardian (theguardian). The urbanization creates millions of jobs and is driving income growth
for the whole nation. Swift rising incomes are fueling consume and so the economic
growth of China.
The numbers also prove that the huge country is continuing her secular catching-up process, which is
fueled by extreme income & wealth differences to the US and other
Western nation values. In 2016 China had about $8,123 income per capita, the US number was $57,466 (worldbank).
The swift retail growth also is raising China´ s importance for the
global economy, which is increasingly fueled by Chinese imports. Don`t
mess with China!