China's top official has an 'inflation warning' for Americans, says US will likely see inflation pick up starting ...
Representative Image (AP Photo/Ahn Young-joon)
China is poised to unleash a wave of artificial intelligence innovation, with over 100 breakthroughs akin to DeepSeek expected in the next 18 months, according to Zhu Min, former deputy governor of the People's Bank of China. Speaking at the World Economic Forum's annual meeting in Tianjin, Zhu said these advancements 'will fundamentally change the nature and the tech nature of the whole Chinese economy,' as reported by Bloomberg.
Zhu, also a former deputy managing director at the International Monetary Fund, attributed China's AI potential to its vast pool of engineers, massive consumer base, and supportive government policies. However, he warned that global trade faces headwinds, telling reporters, 'The uncertainty brought by U.S. tariff policy is an important factor that may lead to negative growth in global trade this year.' As per the report, Zhu noted that the global trade industrial chain is slowing, with investments stalling, amplifying the impact beyond tariff rates alone. Zhu predicted U.S. inflation could rise starting in August as companies deplete pre-tariff stockpiles.
"China saw strong GDP growth, highest since December 2023"
Despite external pressures, China's economy shows resilience. Huang Yiping, a member of the People's Bank of China's monetary policy committee, estimated second-quarter GDP growth exceeded 5%, citing strong April and May performance and positive June indicators. Speaking at the Tianjin forum, Huang, who is also dean of Peking University's National School of Development, highlighted robust retail sales in May, which grew at the fastest pace since December 2023.
However, Huang emphasized that boosting consumption remains a challenge, particularly as global markets become less accessible. 'For a large country, you can't continuously export your excess capacity,' he said, advocating a focus on domestic circulation as a policy priority.
Reflecting on past stimulus measures, Huang acknowledged criticisms of China's aggressive response during the global financial crisis, which led to asset bubbles and local government debt. Still, he supported decisive action today, stating, 'I personally would still support decisive policy action today, and then quickly turn around to deal with the problems later.'
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China's top official has an 'inflation warning' for Americans, says US will likely see inflation pick up starting ...
Representative Image (AP Photo/Ahn Young-joon) China is poised to unleash a wave of artificial intelligence innovation, with over 100 breakthroughs akin to DeepSeek expected in the next 18 months, according to Zhu Min, former deputy governor of the People's Bank of China. Speaking at the World Economic Forum's annual meeting in Tianjin, Zhu said these advancements 'will fundamentally change the nature and the tech nature of the whole Chinese economy,' as reported by Bloomberg. Zhu, also a former deputy managing director at the International Monetary Fund, attributed China's AI potential to its vast pool of engineers, massive consumer base, and supportive government policies. However, he warned that global trade faces headwinds, telling reporters, 'The uncertainty brought by U.S. tariff policy is an important factor that may lead to negative growth in global trade this year.' As per the report, Zhu noted that the global trade industrial chain is slowing, with investments stalling, amplifying the impact beyond tariff rates alone. Zhu predicted U.S. inflation could rise starting in August as companies deplete pre-tariff stockpiles. "China saw strong GDP growth, highest since December 2023" Despite external pressures, China's economy shows resilience. Huang Yiping, a member of the People's Bank of China's monetary policy committee, estimated second-quarter GDP growth exceeded 5%, citing strong April and May performance and positive June indicators. Speaking at the Tianjin forum, Huang, who is also dean of Peking University's National School of Development, highlighted robust retail sales in May, which grew at the fastest pace since December 2023. However, Huang emphasized that boosting consumption remains a challenge, particularly as global markets become less accessible. 'For a large country, you can't continuously export your excess capacity,' he said, advocating a focus on domestic circulation as a policy priority. Reflecting on past stimulus measures, Huang acknowledged criticisms of China's aggressive response during the global financial crisis, which led to asset bubbles and local government debt. Still, he supported decisive action today, stating, 'I personally would still support decisive policy action today, and then quickly turn around to deal with the problems later.'
