China’s manufacturing is on the rebound, according to new government figures.
But the rest of the world is trailing in its wake. And as leaders prepare to gather in Hangzhou, the International Monetary Fund plans to deliver some hard truths at the G20 summit.
CCTV America’s Owen Fairclough has more.
It’s the fraction China and China-watchers wanted to see for months: production at the world’s factory, expanding at its fastest rate in nearly two years.
China’s growth has cooled as it weans loss-making, state-run businesses off public funding and focuses on companies that can boost consumer demand with better goods and services.
However, as China moves into a higher gear again, the rest of the world isn’t.
Just over 3 percent isn’t bad, but that figure has been steadily whittled down because the world is growing slower than it did before the 2008 financial crisis.
G20 countries need to generate trillions of extra dollars by 2018 to improve expectations. That’s with 197 million people out of work-roughly the entire population of Pakistan.
And trade is down as countries including China, U.K. and U.S. accuse each other of protectionism and either limit foreign investment or slap tariffs on each other’s goods.
And now Apple’s $14.5 billion Irish tax bill has thrown the spotlight on a new dispute: where multinationals pay their dues.
The U.S. is accusing European officials of skimming off tax revenues it would rather have in its own coffers. The IMF said a solution is needed quickly.
And that’s the challenge for G20 leaders meeting in Hangzhou: finding a way to snuff out the tax and trade flashpoints before they do more harm.