Commodity rally threatens to erode US$460b China bonus
Rising prices also increase inflationary pressure, limiting scope of the central bank to stimulate the economy
Shanghai
CHINA got a US$460 billion break annually during the collapse in commodity costs, so this year's rally in everything from oil to iron ore is starting to erode the bonus of cheap imports.
That complicates President Xi Jinping's efforts to prop up faltering growth in the world's second-largest economy. Rising prices take money from consumers who use more food, energy and metals than any others in the world. It also increases inflationary pressure, limiting the scope of the country's central bank to stimulate the economy through further monetary easing.
"Any significant upturn in commodity prices such as oil and gas and iron ore would therefore…
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Oil jumps, equities fall as Iran blasts fan Middle East tensions
Gold set for fifth weekly gain as geopolitical risks buoy demand
Oil holds near 3-week low as US sanctions interrupt easing tensions
Seatrium unit ordered to pay US$108 million in arbitration over equipment supply contracts
BP reshapes its leadership team as some executives leave
BHP to decide on future of nickel business by August, trims met coal estimates