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China does not stop growing, especially the one far from the metropolis

The slowdown caused by the tightening of interest rates is proving to be much more gradual than expected. There are too many structural factors working in favor of a sustained boom

China does not stop growing, especially the one far from the metropolis

No "hard landing" for the Chinese economy. The ongoing monetary tightening – repeated increases in the cost of credit and the required reserve ratio for banks – had spooked the markets and raised the specter of a hard landing for the world's second largest economy. But the latest GDP figures – 9.5% year-on-year increase in the second quarter, after 9.7% in the first quarter – show that the slowdown is only gradual. Indeed, there are too many structural factors militating in favor of continued growth. Investments are still high, and have actually contributed more than half to the rate of expansion: China is hungry for infrastructure and the ongoing housing bubble is pushing towards an increase in the supply of homes, especially low-cost ones. A second factor is important: the world economy today relies on the growth of emerging countries, and above all China; but China itself has an 'emerging' part within it: the provinces of the hinterland are developing, and within the subcontinent they repeat the support that all the emerging countries provide to the rest of the world.

http://www.bloomberg.com/news/2011-07-13/china-may-sustain-9-growth-pace-for-2011-with-investment-moving-inland.html

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