THE GUARDIAN: China's economic growth surged to 11.9% in the first quarter, possibly giving Beijing room to allow its currency to rise, but analysts warned it faces growing pressure to cut back on stimulus policies and keep the world's third-largest economy from overheating.
The strong performance might allow a loosening of politically volatile currency controls by offsetting possible losses in export industries. Analysts expect Beijing to allow the yuan to rise some time this year, though President Hu Jintao and others have rejected US and other foreign pressure for a change, saying China will move at its own pace.
Inflation stayed low at 2.2%, below the government's target of 3% for the year, easing pressure for immediate interest rate hikes or other steps to cool the boom. But analysts said Beijing needs to act soon to head off mounting pressure for prices to rise.
"The tightrope is between pulling away stimulus which is still supporting the economy and tightening quickly enough to keep prices from getting out of control," said Tom Orlick, an analyst in Beijing for Stone & McCarthy Research Associates.
The latest data showed China is on the verge of overtaking Japan as the second-largest economy behind the United States. China's gross domestic product last year was $4.9tn (£3.2tn), just behind Japan's $5.1tn. Tokyo has yet to report first-quarter figures. >>> Agencies | Thursday, April 15, 2010
THE GUARDIAN: China argues the issue of Iran's uranium enrichment is not as urgent as Washington claims, and that there is still time for diplomacy
China has deepened economic ties with Iran, boosting direct sales of petrol to the Islamic republic as the Chinese government negotiates new sanctions at the UN security council, it has emerged.
Iran announced today at the UN discussions in New York that it has produced five kilograms of 20% enriched uranium, defying security council demands to stop enrichment. Iran says it needs the enriched uranium to make medically useful isotopes, but western governments fear the achievement will enable Tehran to develop the capacity to make weapons-grade fuel.
General James Cartwright, the vice chairman of the US joint chiefs of staff, said yesterday that Iran could build a bomb in a year, although it would probably take three to five years.
China has argued that the issue is not as urgent as Washington claims, and that there is still time for diplomacy.
A Chinese state oil company has sent two recent shipments of petrol to Iran, according to Reuters news agency. The sale by Chinaoil was the first by a Chinese company since January 2009 of refined oil products to Iran directly, rather than through intermediaries. Another Chinese company, Sinopec, is about to sell petrol to Iran for the first time in six years, filling a gap left by European and Russian firms that left the Iranian market amid fears of punitive action by Washington.
Iran-China trade has more than doubled to about $30 billion (£19.38m) over the past decade, fuelling Chinese reluctance to agree to sanctions against Tehran over its nuclear programme. >>> Julian Borger, diplomatic editor | Wednesday, April 14, 2010
