Blog: Dave LeggettChina rumblings

Dave Leggett | 16 September 2003

Chinese car production was up 89% year-on-year in the first eight months of 2003 and that's a pretty impressive statistic all right, in anyone's language. But the figure for the month of August showed some cooling off from the record levels of the previous two months. The big question now is the extent to which China's auto industry will find itself with over-supply in the coming months. It could be a short-term adjustment, but it could be something more serious. The risks just got a little more prominent this week I think. China's record trade surplus in August and its 8.2% annualised rate of economic growth is also raising concerns about the economy overheating. There's a property bubble thing going on too which could be creating some dangerous instability in the economy. China watchers tell me that the risks on the Chinese economy are looking a bit more serious now.


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