For China and Japan, the Economic Challenges Ahead Are Similar

Japan and China do not always see eye to eye on politics. But when it comes to economic policy, Tokyo and Beijing have remarkably similar goals: Both want to push through far-reaching changes in their economies in the face of mounting debt and rapidly graying populations.

In China, the authorities are trying to steer the economy toward more domestic consumption and growth in the service sector. In Japan, the government of Prime Minister Shinzo Abe is trying to haul the economy out of years of deflation and lethargic growth.

To what extent each country succeeds will be of critical importance, not just to Asia, but to the world. China, with a gross domestic product of about $9 trillion last year, and Japan, with its $5 trillion economy, are the second- and third-largest economies in the world, after the United States. Much hinges on whether these economic powerhouses can succeed in their overhauls over the next few years.

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China economy stronger than data suggests: government

China’s economy is doing better than official data suggests, the Commerce Ministry said a day after figures showed growth at an 18-month low, adding that targets for exports and imports this year should be met despite some caution over the trade outlook.

Ministry spokesman Shen Danyang said a rise in export deliveries, a customs department poll of exporters and growth in trade in individual provinces all showed that the economy was in good shape.

“I agree with the opinion that the economy and trade were faring better than the released data showed,” Shen told reporters at a briefing on Thursday.

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China Resources chairman under investigation by anti-graft body

The chairman of state-owned China Resources Holdings Co. Ltd., a holding company for a group of energy, land and consumer businesses in mainland China and Hong Kong, is under investigation, China’s top anti-corruption body said on Thursday.

Song Lin is suspected of a serious violation of discipline, the Central Commission for Discipline Inspection said in a one-line statement on its website. Violating discipline is official jargon for corrupt activities.

Song appears to be the latest official to fall in President Xi Jinping’s fight against corruption. Xi has vowed to tackle high-ranking “tigers” as well as lowly “flies.”

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Alibaba Valuation Rises to $168 Billion After Earnings

Alibaba Group Holding Ltd.’s estimated valuation rose 9.8 percent ahead of a potential initial public offering after China’s biggest e-commerce company posted record sales and earnings.

The company is valued at $168 billion, based on the average estimate of 12 analysts surveyed by Bloomberg News. That compares with the $153 billion average of 10 estimates in February. Alibaba this week reported profit more than doubled to $1.35 billion in the three months ended December, as revenue surged 66 percent to $3.06 billion.

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Japan’s Abe dubs China vital partner amid territorial disputes

Japanese Prime Minister Shinzo Abe criticized Beijing for trying to “change the status quo” with force in maritime disputes but said China was a vital economic partner, as a series of visits suggested a possible thaw in ties between the Asian rivals.

Sino-Japanese ties have been strained by a territorial row over tiny disputed isles in the East China Sea and perceptions in Beijing that Abe wants to rewrite Japan’s wartime history and tone down past apologies.

“China’s growth is a chance for Japan, and for the world as well. China is Japan’s largest trading partner and we are in inseparable relations economically,” Abe said at a symposium.

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Obama looks to salvage Asia ‘pivot’ as allies fret about China

When a Philippine government ship evaded a Chinese blockade in disputed waters of the South China Sea last month, a U.S. Navy plane swooped in to witness the dramatic encounter.

The flyover was a vivid illustration of the expanding significance of one of Asia’s most strategic regions and underscored a message that senior U.S. officials say President Barack Obama will make in Asia next week: The “pivot” of U.S. military and diplomatic assets toward the Asia-Pacific region is real.

Washington’s Asian allies, however, appear unconvinced.

During Obama’s four-nation tour of Asia that begins on April 23, his toughest challenge will be to reassure skeptical leaders that the United States intends to be more than just a casual observer and instead is genuinely committed to countering an increasingly assertive China in the region.

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China growth slows as property fears rise

China’s economic growth slowed in the first three months of this year to 7.4 percent from a year earlier, government data showed Wednesday, dragged down by a slowdown in property investment growth as concerns rise about a possible slump in the real estate market.

The news was shrugged off by financial markets and will not cause any panic in the corridors of power in Beijing just yet: The headline number was slightly better than analysts had expected and not far below an official target of 7.5 percent announced last month or the growth of 7.7 percent recorded in 2013.

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