By World Bank Office, Beijing 
 
Overview
Large fiscal and monetary stimulus has supported a recovery in China’s economy. Falling exports amidst the global recession have been a major drag on growth. Nonetheless, real GDP growth rose to 8.9 percent year-on-year in the third quarter on the back of the stimulus. Although most of the stimulus has shown up in infrastructure-oriented government-led investment, some has been consumption-oriented and domestic demand growth has been broad based. Resurgent housing sales have started to feed through to construction activity. Investment in manufacturing is affected by spare capacity, but consumption has held up well. The strong domestic demand has buoyed import volumes and the current account surplus may fall to 5.5 percent of GDP this year even with import prices down sharply. The downturn has clearly affected the labor market, but the impact has been smaller than expected and the trough may have been past.

By Zhu Hong, China Today Staff Reporter
 
Being one of the three major engines of the economic growth in China, exports are suffering a setback in the global financial crisis. Most export-oriented enterprises are facing sluggish sales and overcapacity. This situation has forced them to look for alternatives, and many are discovering a huge and previously neglected domestic market.

China will soon allow foreign investors the option to invest in the mainland via partnership firms beginning in March 2010.

By Aaron Glantz, New America Media
 
Loans handed out to struggling small businesses as part of President Barack Obama's stimulus package have largely shut out minority businesses -- especially those owned by Blacks and Latinos -- according to data provided by the federal government's Small Business Administration (SBA) to New America Media (NAM).

China's solar panel maker Suntech Power Holdings Co., Ltd. said it will set up its first U.S. factory in the Greater Phoenix, Arizona area. Steven Chan, Suntech's Chief Strategy Officer, said in Beijing the company will make an initial investment of US$10 million. The investment decision was made as the solar energy market grows rapidly in North America thanks to the region's pro-solar policies. The U.S. market had 356 MW of solar PV capacity installed during 2008 and is expected to grow six-fold to more than 2 gigawatts (GW) by 2012.
 
Source: CTR / U.S. Commercial Service, China
China's proactive employment policies and measures in the wake of the financial crisis have generated positive results, Yin Weimin, Minister of Human Resources and Social Security, said on [Dec. 19].

By Gao Tian and Lin Jianyang, Xinhua
 
To buy or not to buy, that is a question.
 
The year 2009 saw Chinese private companies -- mostly "nobody" before the global financial crisis -- being given a chance to merge some overseas industry leaders, who suffered heavy blow or even went bankrupt in the crisis.

China State Construction Engineering Corp, the largest contractor in China, has bagged a subway ventilation project worth about US$100 million in New York's Manhattan area, marking the construction giant's third order in the United States' infrastructure space this year. In the first three quarters of this year, the Chinese construction giant signed more than US$2 billion worth of contracts in the U.S. market.
 
Source: CTR / U.S. Commercial Service, China

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