China's economic growth picks up speed in third quarter

BBC

">A Chinese hawker sells sweet potatoes beside a roll of new telecommunications cabling in Beijing yesterday. China's economy expanded 7.8 percent year-on-year in July-September. Photo: AFP

China's economic growth picked up pace in the July-to-September period, the first rise in three quarters.
The world's second-biggest economy grew 7.8 percent from a year earlier, up from 7.5 percent expansion in the previous quarter.
The official figures also showed growth in industrial output, retail sales and fixed asset investment.
After years of blistering growth, China has seen its pace of expansion slow recently and there have been fears that growth may slow further.
China has set a growth target of 7.5 percent for the year. Analysts said the latest numbers indicated that it was likely that Beijing would meet this.
"This is an indication that China's economic growth is holding up in a range which is within the comfort zone of both the Chinese policymakers as well as global watchers," said Song Seng Wun, a senior economist with CIMB Research .
Over the past few decades China has relied heavily on its exports and manufacturing sectors as well as government-led infrastructure spending to help boost growth.
However, a slowdown in key markets such as the US and Europe has hurt demand for its exports.
As a result, it has been trying to spur domestic demand to offset the decline in foreign sales and also to rebalance its growth.
Earlier this year, it unveiled fresh measures to help boost the economy.
From 1 August, China has suspend value-added tax (VAT) and turnover tax for small businesses with monthly sales of less than 20,000 yuan ($3,257; £2,125).
The cabinet said the move would benefit more than six million small companies and boost employment and income for millions of people.
Policymakers said they would also implement measures to simplify customs clearance procedures, cut operational fees and facilitate the exports of small and medium-sized private enterprises.
The cabinet also announced plans to completely open China's railway construction market to private investors to develop the sector further.
It said it would set up a railway development fund, with the initial money coming from the government.
Analysts said the moves were starting to have an impact on the growth numbers.