Economics: Why Media & Pundits Don`t Get China

(Drivebycuriosity) - There is again a lot ado about China`s economy. Media & pundits lament that China's economic growth slumps to lowest in 27 years  (cnn). But the commentators draw a wrong picture.

The news from the economic front show that China´a economy is gaining speed again! China´s retail sales jumped 9.8 % year-on-year in June, faster than in May (plus 8.6% ). This is the strongest retail growth since May 2018 (chart below source ). China's industrial production accelerated to a growth rate of 6.3% year-on-year in June 2019, following a 5.0% rise in the previous month and beating market consensus of a 5.2%  gain (industrial). As a result the Chinese economy grew by a seasonally adjusted 1.6 percent on quarter in the three months to June 2019, accelerating from a 1.4 percent expansion in the previous period and beating market consensus of 1.5 percent (source).

 The strong retail sales are supporting China´s transformation into a modern economy like the US which is driven by consumer demand. The domestic retail growth also reduces China´s dependence from foreign markets. It seems that media & pundits are deliberately misinforming the public. They share US President´s dislike of the country, which looks racist.