China Economy Showing Signs of Recovery from SARS
According to a Morgan Chase report, the SARS effect on
the Chinese economy will be less than originally feared.
It says that China's GDP will grow by 7.4% during 2003
in spite of the SARS crisis, which has drawn so much international
attention.
Although the Chinese economy was hit hard by the SARS
crisis, the Chinese economy is still financially strong,
and is able to withstand the blow. It added that China
is financially healthy, and is a major holder of short-term
bonds and is able to withstand the financial setback.
The report predicted 8% growth before the SARS crisis.
Even with a 7.4% growth rate, China would have the fastest
growing economy in Asia.
Beginning in the second half of May, Beijing retailers
have seen signs of new business activity.
In related news, Dell has lifted a business travel ban
to China for its employees. Dell has a large factory in
Xiamen in Fujian. It is believed that other American companies
will also shortly lift their travel bans to China.
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