Wednesday Briefing: China’s economy grew faster than expected
Good morning. We’re covering unexpected growth in China’s economy and possible new U.S. sanctions on Iran. Plus, Australia’s feral cat problem.
China’s economy grew more than expectedChina’s National Bureau of Statistics said yesterday that the economy grew 1.6 percent in the first quarter over the previous three months, despite a severe real estate crisis and sluggish spending at home. When projected out for the entire year, the first-quarter data indicates that the economy was growing at an annual rate of about 6.6 percent. China had set a growth target of about 5 percent for the year, a goal that many economists viewed as ambitious. The economic boost came from a familiar tactic: heavy investment in manufacturing, including a binge of new factories that have helped to propel sales around the world of solar panels, electric cars and other products. “China may have found a way to blunt the effects of its housing market crisis,” my colleague Keith Bradsher told us, “but only if Beijing can persuade other countries to buy more manufactured goods than ever from China.” Foreign countries and companies are concerned that a flood of Chinese shipments to distant markets may undermine their own manufacturing industries and lead to layoffs. The Chinese government has encouraged families to spend more, but households are “unenthusiastic” about being the ones to consume this burst of manufactured goods, Keith said. Many Chinese households borrowed heavily to invest in apartments and are responding to falling home prices by cutting back their spending. On a trip to China this week, German Chancellor Olaf Scholz promoted his country’s business interests while raising concerns over Beijing’s surge of exports to Europe and its support for Russia.
The U.S. is planning new sanctions on IranThe U.S. plans to impose new sanctions on Iran in the coming days to punish it for the attacks on Israel over the weekend, Treasury Secretary Janet Yellen said yesterday. While she didn’t elaborate on what form they would take, she suggested that the Biden administration was considering ways to further restrict Iranian oil exports, which are a major source of its government revenue. The U.S. is also looking at ways to cut off Iran’s access to military components, which it uses to build weapons like the drones it deployed against Israel, according to a Treasury official. Background: The U.S. has imposed extensive sanctions on Iran over the years as part of a broad effort to put pressure on its economy and prevent it from acquiring nuclear weapons.
Trump’s jury is filling outSix jurors were selected yesterday to hear the case against Donald Trump in New York, the first criminal trial of a former American president. The selection process was expected to take perhaps two weeks or more, but the jurors were picked in short order after a midday break. Both sides must agree on 12 jurors, who will decide the case. The process got off to a rocky start on Monday, as dozens of jurors were dismissed after an initial inquiry, at a failure rate that my colleague Alan Feuer called “surpassingly rare.” The wrangling underscored a key challenge: the difficulty of picking a jury in a city where the defendant is unpopular. Could you be an impartial juror? See the questionnaire for Trump’s hush-money trial. |
