Thanks to globalization, one nation's fiscal spending to stimulate economic growth is bound to "leak out" to the entire global supply chain. For example, China's move to subsidize big-ticket item purchases - such as appliances, cars and electronics - in rural areas is bolstering sales for Japanese and Taiwanese suppliers, among others.
Chinese financial media CBN cited a report from Nihon Keizai Shimbun saying that Japanese material suppliers, including Mitsubishi Chemical Corp., have raised their ethylene capacity utilization rates to 75-90 percent. The report attributed the change to China's growing demand as well as the ending of the industry's inventory adjustment.Taiwan Union Plastic Machinery Co. Ltd. also reported 10-15 percent sales growth in the first quarter, when the company said it sold more than a dozen large injection molding machines (with clamping forces of more than 1,600 metric tons). The company's 2008 sales contracted 5-10 percent, according to a news story from Xinhua News Agency. "We didn't expect to see the effects [of the stimulus package] so soon," a company official said, "We believe the growth rate will reach 20 percent for 2009 fiscal year."SEARCH
ABOUT
This page contains a single entry from the blog posted on April 16, 2009 11:45 AM.
The previous post in this blog was Dalian PVC futures approved.
The next post in this blog is The innovative counterfeiter.
Many more can be found on the main index page or by looking through the archives.
Powered by Movable Type 4.25
Return to The PN China Blog home page
Go to the PlasticsNews.com/China home page
« Dalian PVC futures approved | Main | The innovative counterfeiter »
China's stimulus plan shows benefits
TRACKBACK
TrackBack URL for this entry:
http://www.plasticsnews.com/mt-tb.cgi/3399
COMMENTS (2)
yogendra:
Fixed asset investment in China soared in the first two months of the year, as Beijing’s $585 billion stimulus plan took hold. But more stimulus may be needed, as China’s all-important export sector continues to sag and declines in consumer prices have raised concerns about deflation.
Fixed-asset investment in China climbed an estimated 26.5% year-over-year in the first two months of 2009, the National Bureau of Statistics said yesterday (Wednesday). Railroad investment - a key fixture in the $585 billion stimulus plan Beijing unveiled in November - led the way, more than tripling in the months of January and February.
New domestic currency lending has increased as well, surging to 1.6 trillion yuan in January.
“The economic figures are stabilizing and recovering, which demonstrates that the policies have begun to show an impact,” said Chinese Bank Governor Zhou Xiaochuan.
==========
Yogendra
==========
Business Forums-Business Forums
Don Sabatini:
Yes, you are true. At least China is benefiting from the stimulus package, unlike America, where we could not spot the difference in economic situation after this stimulus package also.