Page 25 - ARUBA TODAY

BUSINESS Monday 6 March 2017
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China trims 2017 growth target, warns against trade controls

tive meeting to emphasize munist leaders try to de-
reducing financial risks and velop a consumer-driven
keeping growth stable. economy and reduce reli-
At a time of demands in ance on trade, heavy in-
the United States and Eu- dustry and investment.
rope for trade controls, Li The latest growth target is in
warned China faces “more line with those reforms and
complicated and graver efforts to create a “moder-
situations” at home and ately prosperous society,”
abroad. Li said.
“Both the de-globalization Chinese leaders have tried
trend and protection- to downplay the signifi-
ism are growing,” Li said. cance of the growth target
“There are many uncer- and shift focus to improve-
tainties about the direction ments in incomes, consum-
of the major economies’ er spending and other fac-
policies and their spillover tors. But the target is closely
effects, and the factors watched as a forecast of
that could cause instability economic performance,
and uncertainty are visibly which has repercussions
increasing.” Chinese lead- throughout Asia, where
ers have publicly defend- China is the biggest trading
A Chinese worker sleeps in his bicycle cart under an advertisement for a new building develop- ed free trade in response to partner for all its neighbors.
ment as a man passes in Beijing. China’s top economic official trimmed the country’s growth President Donald Trump’s Li acknowledged concerns
target and warned Sunday of dangers from global pressure for trade controls. promises to raise duties on about the rising dangers of
(AP Photo/Kevin Frayer)
JOE McDONALD and Europe. He pledged efforts to create new indus- Chinese goods, though debt, though he said the fi-
Beijing’s trading partners nancial system is stable.
AP Business Writer equal treatment for foreign tries are gaining traction. complain China is the most “We must be fully alert to
BEIJING (AP) — China’s top companies, apparently The premier called for at- closed major economy. the buildup of risks related
economic official trimmed responding to complaints tention to the risks of Chi- China “may be adversely to non-performing assets,
the country’s growth tar- Beijing is trying to squeeze na’s surging debt levels, affected” if Trump goes bond defaults, shadow
get and warned Sunday them out of technology which economists see as a ahead with “tough poli- banking and Internet fi-
of dangers from global and other promising mar- rising threat to growth. cies,” but the impact nance,” said Li.
pressure for trade controls kets. Li announced no major should be limited, said Banking and securities reg-
as Beijing tries to build a Li’s report set the growth initiatives, but that was economist Song Lifang at ulators already have said
consumer-driven economy target for the world’s sec- widely expected as the rul- Renmin University in Beijing. their priority this year is re-
and reduce reliance on ex- ond-largest economy at ing Communist Party tries “With China’s domestic ducing risk and watching
ports and investment. “around 6.5 percent or to avoid shocks ahead of economy still in the phase financial industries more
In a speech to the national higher, if possible.” That is a congress late this year at of transformation, the tasks closely following a 2015
legislature, Premier Li Keq- down from last year’s 6.7 which President Xi Jinping is for China’s economic stock price collapse and
iang promised more steps percent expansion but, due to be given a second growth are arduous but warnings investors are en-
to cut surplus steel produc- if achieved, would be five-year term as leader. with great potential,” said gaged in a dangerous
tion that is straining trade among the world’s stron- Analysts expect Chinese Song. Growth has cooled new bout of speculative
relations with Washington gest, reflecting confidence leaders to use the legisla- steadily since 2010 as com- trading.q

EU giant Deutsche Bank to raise $8.5 billion to help restructure firm

KEN SWEET the rest of its retail bank- Management has made sequent financial crisis. The significantly less than the
AP Business Writer ing business. several efforts to fortify bank agreed in December rumored $14 billion that U.S.
NEW YORK (AP) — Europe- “Our decisions are a sig- the bank and its balance to pay $7.2 billion in fines authorities were pushing
an banking giant Deutsche nificant step forward on sheet, including cutting ex- and penalties, which was Deutsche to pay.q
Bank announced plans the path to creating a sim- penses and selling off parts
to raise at least $8.5 bil- pler, stronger and growing of the business.
lion in capital and sell off a bank,” Deutsche Bank CEO Up until recently, bank
stake in its asset manage- John Cryan said in a state- management had resisted
ment business, in a move to ment. selling new shares in the
help shore up the troubled Deutsche Bank, one of bank, making the argu-
German firm. the Europe’s largest finan- ment that it would hurt ex-
Deutsche Bank will issue cial firms, has struggled to isting shareholders. Instead,
687.5 million new shares lat- maintain profitability in the management have fo-
er this month, the bank said last two years. The bank cused on trying to sell Post-
Sunday, in an effort to take has faced billions of dollars bank. But Deutsche Bank
advantage of the recent in fines for its role in the fi- was not able to find buyers
run up in the bank’s stock nancial crisis from both U.S. for the retail banking unit,
price. and European authorities, leaving the bank with few
As part of the restructuring, low interest rates both in options other than to raise
Deutsche said it will take a the U.S. and Europe, and a fresh capital.
part of its asset manage- struggling European econ- Deutsche Bank was one
ment business public. The omy. The firm reported a of the last major banks to
bank will also abandon its $1.51 billion loss in 2016 and settle with Justice Depart-
plans to sell Postbank, and massive $7.38 billion loss for ment over its role in the U.S.
will integrate Postbank into 2015. housing bubble and sub-