Dhaka, Bangladesh
Foundation solid for stable China growth

Foundation solid for stable China growth

BEIJING, Oct. 12 (Xinhua): China’s economy has a solid foundation for continued stable growth with an improved financial environment both at home and abroad, economists said,predicting an annual expansion of 6.8 percent for 2017. “Although downward pressure will continue in the fourth quarter, there won’t be fundamental changes in China’s stable economic operation,” noted Bank of Communications economist Lian Ping. Investment in infrastructure is likely to maintain steady growth, but due to restraints on funding sources and a high comparison base, further acceleration will be limited, Lian pointed out. Property investment may slow due to government purchase restrictions, while the fourth quarter usually sees a boom in spending, a high comparison base last year could mean subdued consumption growth, according to Li Xunlei, chief economist with Zhongtai Securities. The GDP growth rate for the third quarter is due to be released on Oct. 19, and analysts largely put the figure at 6.8 percent. Meanwhile, as prices for industrial goods rose significantly this year, nominal GDP growthwill likely to accelerate to the highest since 2012, according to Lian. The IMF Tuesday raised its forecast for China’s economic growth in 2017 and 2018, citing the stronger than expected performance in the first half of the year and continuous policy support. In its latest World Economic Outlook, the IMF expected the Chinese economy to grow 6.8 percent this year and 6.5 percent next year, 0.1 percentage point higher than its previous forecast in July. At a press conference on Tuesday, Ning Jizhe, head of the National Bureau of Statistics, struck a confident tone on the country’s economy, saying that China is sure to achieve its 6.5-percent annual economic growth target. Taiwanese authorities have imposed a record fine of nearly $800 million on Qualcomm for antitrust violations in the latest of a string of setbacks for the US computer chip giant, reports AFP. Taiwan’s Fair Trade Commission slapped Qualcomm with a fine of Tw$23.4 billion ($774 million) for harming market competition and manipulating prices following an investigation launched in 2015. “Qualcomm’s illegal actions have seriously affected the (market) competition... to ensure, maintain or enhance its dominance in the market,” the commission said in a statement late Wednesday. According to the commission, Qualcomm had violated fair trade rules for at least seven years by refusing to offer licenses that are essential for manufacturing chipsets to rival manufacturers and had imposed unfair contracts on smartphone makers. Qualcomm earned more than $13.33 billion in royalty fees and $30 billion in baseband chip sales to local companies during that period, it added. The world’s biggest handset chip supplier said Thursday it would appeal the fine. “Qualcomm disagrees with the decision... and intends to seek to stay any required behavioural measures and appeal the decision to the Taiwanese courts,” the company said in a statement. Last year, Qualcomm was hit with a record fine exceeding $850 million by South Korea’s antitrust watchdog for abusing its dominant market position as a maker of baseband chipsets used in mobile phones. It was also fined nearly $1 billion by Chinese antitrust authorities in 2015 for violation of competition rules. In the United States, Qualcomm is locked in contentious patent battles with fellow tech giant Apple, which filed a lawsuit in January accusing the chip maker of abusing its market power to demand unfair royalties. Apple has also joined efforts in other countries where Qualcomm faces probes from antitrust authorities. Qualcomm in turn has sued Apple for allegedly using the chip maker’s technology without paying for it.

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