China set to become a ‘two-track economy’
The Chinese economy is strengthening, with both manufacturing and service sectors growing.
However, commenting on the new signs of growth in the Chinese economy and recent rise in bank lending, professor of strategic management at the Warwick Business School Kamel Mellahi warned that the economy is not rebounding for everyone.
Mellahi said: "This is a two-track economy. The chasm dividing the old manufacturing sector and the new service sector is going to get bigger. There has been a lot of pressure on unemployment in the old manufacturing sectors where there is an overcapacity problem, such as steel and coal. Millions of people are being laid off. The recent data suggests that the service and manufacturing sectors are not absorbing enough people to offset the restructuring in the old manufacturing sector.
"Most indicators suggest that the economy is heading in the right direction, but it’s too early to say whether the economy is entering a sustainable U-turn and a major rebound is around the corner. At this stage, most of the indicators are mere anecdotal evidence that a potential economic upturn is on the horizon.
"The better than expected performance does not look sustainable, as the positive indicators can easily be wiped out. There are still plenty of concerns about the Chinese economy, but the recent data suggests a hard landing is unlikely."
UK strengthens trade ties with Mexico
Lord Price, the new Minister for Trade and Investment, embarked on his maiden trade visit to Mexico where he will attend a meeting of the Senior Business Leaders Group.
The Trade and Investment Minister, Lord Price, said: “The UK and Mexico have a strong trading relationship – they are our largest food and drink trading partner in Latin America. I am pleased to be here, on my first trip as Trade Minister, to look at ways of building on the trade ties between our two countries.
“This visit is a great opportunity to hear first-hand from business about how the government can further support those looking to export – including through our Exporting is GREAT campaign – and look at ways to continue to attract investment from Mexico into the UK.”