Does anyone know what the Chinese for 'soft landing' is?
THE Spanish bank crisis and political uncertainty in Greece have distracted us from the biggest story of them all -- the rapid deceleration of the Chinese economy.
After more than 30 years of double-digit growth, the Chinese economy is rapidly running out of steam. Manufacturing fell for the eighth successive month in June, with new export orders now at their lowest level since March 2009.
There are also clear signs of distress coming from the Chinese banking system, with China having cut interest rates earlier this month -- the first rate cut since 2008. Many of the Chinese banks have stopped lending, and the Chinese authorities are now exploring ways of securitising some of the banks' existing loans in order to free up capacity for fresh lending.
Meanwhile Procter & Gamble, the world's largest consumer products firm, making everything from Bold washing powder to Gillette razor blades, has cut growth forecasts. P&G has identified slowing Chinese growth as being partially responsible for its problems.
With the rest of the world pinning its hopes on China, to pull the global economy out of recession, the omens are not good. What's the Chinese for soft landing?
Sunday Indo Business