Economics

China Economy's Strong Start Faces Risks at Home and Abroad

  • Macquarie says first two months likely were ‘peak of the year’
  • Tillerson’s replacement may signal a harder U.S. line on trade
UBS Chief China Economist Head of APAC Economic Research Tao Wang discusses the latest economic data from China. (Source: Bloomberg)
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China’s crackdown on financial risks and trade tensions with the U.S. threaten to undermine a stronger-than-expected start to the year for the world’s second-largest economy.

Factory output and investment in fixed assets exceeded economists’ expectations in the first two months of this year, climbing 7.2 percent and 7.9 percent respectively from a year earlier as Chinese exports surged. Retail sales also remained robust, statistics bureau data -- combined for January and February to smooth effects from the Lunar New Year holiday -- showed on Wednesday.