Markets have always been frightened by the Chinese giant but it seems that data is contrasting with this fact if we talk about production.
As just published by the Chinese government, the growing of the economic production during the third trimester of this 2014 have been about the 7,4%. Out of context, we could be talking about a sustained but optimal growth , but keep in mind that we are talking about one of the most important countries in terms of production and that these data reflect a situation far from normal in this country, since they resemble the data from the first quarter of 2009
But all the consecuences of these growth are worrying Beijing, that is looking for the best economic mesures to continue in the second place of the world economy. In these terms, they have been changing policies such as the closures of factories with forced labor, freeing interest rates or the opening of financial transactions .
The problem here are the consequences for countries like Brazil or Australia as they watch how their raw material markets suffer when exporting products to China. This is also a result of the drop in home sales , about 10 % and that was the recipient of imports of cement and steel.
In this new economic environment, observers of the area as Versus Wealth Management, Credit Suisse or Black Rock, are aware of the measures that can take the Chinese government because, on the one hand do not want the growth will slow over the coming years , but neither wants to get to apply more stimulus to boost growth because, in part, this makes their products more competitive as far as exports are concerned , and even as far as domestic demand has to do .
Also considering that China is the largest producer and consumer of agricultural products , it is not surprising that its territory will end up being the destination of many multinational factories looking to do business in this new economic situation , which eventually result in investments that reach the country.
We then have to wait to know the final market behavior during this last trimester and the annual balance, that will be published once 2015 arrives as this will be the real economic pulse of this area of the world.