Drop of 22.9% from January to May. The Office for National Statistics dares optimism, talking about a slowdown in the decline. But it is the logical consequence of the closure of tens of thousands of factories. And the figure does not include small businesses hardest hit by the crisis.

Beijing (AsiaNews / Agencies) – A record collapse in industry profits for Chinese companies, dropping by 22.9% from January to May 2009 compared to 2008. The National Bureau of Statistics (NBS), in communicating the data today, however, displayed a cautious optimism, noting that there has been a significant slowdown in the period after January/February when there was a  decline of 37.3% compared to 2008.

However this minor deterioration appears to depend on mere adjustments to the current market decline, thanks to an increase in domestic consumption (including the decline in the prices of many products), lower costs and the stabilization of prices for producers. The robust investment by the Chinese government implemented in various sectors also helped. To stimulate domestic consumption, even Beijing has ordered local governments to buy local products from China.

Today, the Chinese Minister of Commerce addressed the problem once again, to say that this measure is not "protectionism" or discrimination against foreign producers, but that it only wants to invite local officials to give in-depth analysis on which the product is more suitable for public needs.

The NBS especially notes that the lower price for fuel and raw materials has slowed the fall in industry profits.

Experts note that the problem is particularly serious because it is structural, arising from the closure of tens of thousands of factories with tens of millions of migrants who have lost work.

Moreover, the figure includes only firms of a certain size, leaving out the majority of small producers, which is precisely those most affected by global financial crisis.

In the first quarter of 2009, the Chinese economy grew by 6.1% a figure analysts consider too low to cover new job offers in the same period.

But NBS is optimistic and foresees a growth above 8% in the third quarter of 2009 and more than 9% in the fourth quarter. The Office does not explain on what it basis these estimates, which do not appear to respond to objective data.

 

• chin
• indusrty
• crisis
• profits
• drop
• recovery
• unemplyment