(September 4, 2012, New York) The Chinese economy has a habit of beating expectations. For ten years in a row, from 2001 to 2010, its growth rate exceeded the IMF's spring forecast, often by a big margin. But this year it is likely to disappoint. In recent months, industrial output has slowed sharply; stocks of unsold goods are piling up; and Shanghai's stockmarket is at a three-year low. For the first time this century, in 2012 China's growth rate may dip below 8%. With the world ever more dependent on China's economy, that is worrying. And this issue will be discussed at China Leaders Forum 2012, "Will the Chinese Tiger Come Roaring Back After the Crisis?", October 2nd, New York City.
Some of the global headwinds buffeting China were foreseeable . Nonetheless, most economists assumed the country's policymakers could quickly revive growth if necessary. In China, in contrast to Japan or America, interest rates (and bank reserve requirements) have plenty of room to fall. China has an enviable amount of fiscal leeway. And its property slowdown largely reflects government curbs on speculative homebuying that officials could lift, if they so chose.
The government has done some of what was expected of it. It has cut rates and reserve requirements a bit. Infrastructure spending has picked up. In replacing business taxes with a value-added tax, the government has eased the fiscal burden on small firms. It is also happy to help first-time homebuyers.But its actions have lacked any of the clarity or urgency of November 2008, when policymakers rallied the banks, state-owned enterprises and local officials to fend off the global financial crisis. That stimulus turned out to be bigger than the crisis warranted. This year, in the face of a much smaller shock, the government's response has fallen short.
What explains its hesitation? As it will be discussed at China Leaders Forum 2012, "Will the Chinese Tiger Come Roaring Back After the Crisis?", New York, October 2nd (www.ChinaLeadersForum.com), some now doubt the central bank's ability to revive growth. Even if it did ease rates and other lending restraints, credit would not rebound, they argue, because the banks cannot find willing borrowers.
China Leaders Forum 2012, "Will the Chinese Tiger Come Roaring Back After the Crisis?", October 2nd, New York City, will provide attendees with the responses to the above-mentioned questions and the most up-to-date review of where the Asian giant stands and the challenges and opportunities for businessmen looking to expand their business with China when others only see growth contraction. Topics that China Leaders Forum 2012 will discuss include:
•Internationalization of the Renminbi
•Post- crisis relationship between US and China
•The Euro Debt Crisis and How it will Affect the Chinese Economy
•China's Investments in Europe: To Save or Not to Save the Euro?
•What steps China will need to perform in order to maintain its growth and success?
Recognized experts, regulators, and strategists, will return to China Leaders Forum 2012 in its fourth edition to provide the information practitioners are looking for in an open and unbiased environment, highly conducive to the most efficient and effective networking.
China Leaders Forum 2012 is produced by Golden Networking, the premier networking community for business executives, entrepreneurs and investors. Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to email@example.com.