Investment In China Jumps 25 Percent Despite Efforts To Rein In Spending

AP:

China's investment in factories, real estate and other urban assets rose 25.7 percent in the first three quarters of this year from the same period last year, a central bank official said Sunday, despite curbs meant to prevent runaway spending.

The government is trying to rein in investment in real estate and industries including autos and textiles to control soaring housing prices and head off overspending that Chinese leaders worry could ignite a financial crisis. But the flood of money pouring in from China's exports has made it difficult to contain investment.

Read the whole story: AP

Comments

[emerywood]

11:17 AM on 10/22/2007

Wondered why China has so much money floating around ? That's because they are communists in politics only. Their economy is capitalistic but without unlimited spending on social security or healthcare or safety net for it's citizens and no money wasted on tort system. The day they learned deficit spending or helping the poor and the sick for politics will be the beginning of the end for their prosperity.

[marko77]

10:29 PM on 10/21/2007

In an article last week, it was stated that the 4th richest person in China was a 27 year old women, whose net inherited worth is 16.3 billion dollars. All thanks to the "Global Economy."

She's never worked a day in her life, but if she wants, she could probably buy the state of California. Say goodbye to America - it's going, going, and will be gone soon. How sad. Say hello to "my little friend the Flat Earth," as Tony Montana might say.

[godlessclif]

07:11 PM on 10/21/2007

Slave labor is so profitable. China should try increasing wages, that would put a break on the investment boom.

[olephart]

05:28 PM on 10/21/2007

Ha! All you Liberal nay Sayers bad mouthing supply side economics. By lowering taxes on Capital, George Bush has made it possible to increase investments in growth! Wealthy Americans, through investment vehicles, and Corporations are pouring money into China and they're experiencing over 12% annual growth. Ha! Damn ignorant Liberals.

[marko77]

10:24 PM on 10/21/2007

"Ha! All you Liberal nay Sayers bad mouthing supply side economics." by olephart
-------------------
Give it a rest olefart. If you are being sarcastic, my apologies. If not, then dig this:

The 12% annual growth goes into the pockets of the a very very few Americans, and lowers the standard of living for 99% of Americans. Bye bye middle class and the poor are going to get much poorer.

olefart - It seems you see nothing wrong with living in a third world country, which is what America is becoming fast! I do mind. You are high on greed, which is worse than being strung out on Coke or Heroin.

[olephart]

11:01 PM on 10/21/2007

Gotcha, keep up the good work, fighting the feckless face of effete fascism is a never ending task.

It is sometimes more amusing to throw their lies back into their faces. Supply side nonsense is touted as helping America, as was pointed out nothing could be further from the truth. Our capital is helping to build Communist China.

"The Capitalists will sell us the rope with which we will hang them." Vladimir Ilyich Lenin

[mmckinl]

03:08 PM on 10/21/2007

China needs to let their currency rise. Unless they make it more expensive to invest the current trend will continue.

China would be smart to do this to develop their middle class faster. Their reliance on the United States could prove to be a disaster.

The real picture will emerge after the Olympics.China is fully committed to the Olympics as a matter of national pride.

China will try desperately to hold on to the current system until then. After that anything goes.