Business Journal NORTHEAST
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DECEMBER 2015 VOL. 30 NO. 13
As NEpA exports exceed $1 billion, health of Chinese economy worrisome
2007 when the total hit $1 Imagine a powerhouse billion. nation experiencing a slowing Plastics and rubber of its annual GDP growth, accounted for $237 million whose stock market has lost of this 2013 total. Machinery $4 trillion in value and who manufacturing generated anis uncertain about the value other $104 million in exports. of its currency. Add to that Other categories of NEPA a business sector with an exports during 2013 include excess of bloated companies, transportation equipment incidents of massive environtotaling $129.8 million, chemimental degradation, an aging cal manufacturing at $206 population and decades of The Chinese economy grew an annual 6.9 percent in the third quarter of 2015, slightly down million, and food manufacturcorruption. ing at $206 million. More from 7.0 percent in the previous quarter and the weakest since first quarter of 2009. Hello, China — a nation recently, the category of Source: www.tradingeconomics.com/ whose renowned economic primary metals has achieved of 2015, and forecasts indicate a growth rate of 6.5 miracle appears to be wind$90.7 million in exports. percent during 2016. Fortunately for the Chinese, ing down. “These are the big movers and shakers for NEPA,” many large manufacturers are already in place there China’s once-explosive GDP growth has slowed says Ooms. “From 2007 to 2013, we achieved a 22 to an annual rate of 6 to 7 percent, an enviable rate for and this activity is supported by deeply entrenched percent export increase, proving NEPA is really a part supply chains.” most economies but not for China, which had been of the global economy.” Adams believes current global market trends are enjoying upwards of 13 percent growth. To make Ooms adds that during her travels throughout stacked against the Chinese. matters worse for analysts outside the country, grave NEPA she hasn’t heard any concerns that a Chinese For example, the textile industry is increasingly questions are surfacing about the accuracy of these slowdown will curb the global economy. Actually, migrating to other countries in Southeast Asia and numbers because China’s business sector and media she says, the talk indicates admiration for the 6-plus Mexican labor is capable of providing costs and are state-controlled and prone to propaganda. percent growth still achieved by the Chinese. Bill Adams, senior international economist with the capabilities that rival those in China. No funeral “Our commercial strengths in Pennsylvania PNC Financial Services Group, is acknowledged as a could also play into this evolution with China,” says national expert on China. He confirms that China has Doug Batzel, the globe-trotting president of Batzel forged the world’s second-largest economy, just behind Adams. “These changes will undoubtedly create Engineering Consulting, says reports of the Chinese the United States. Together these two economic power- new opportunities.” economy’s death have been greatly exaggerated, to houses set the global pace for economic conditions. paraphrase Mark Twain. Global power According to Adams, China is now logging an Batzel is regarded as a global expert on the subject The Chinese economy should be of concern to adjusted GDP growth of 6.9 percent measured 12 of oil and gas production, and recently traveled to everyone, says Teri Ooms, executive director with the months earlier. The United Sates, during this time, China for a week of fact-finding with a team of 70 busiInstitute for Public Policy & Economic Development. recorded a paltry GDP growth of 2 percent. ness scholars associated with Temple University. A breakdown of exports leaving NEPA clearly indicate Adams notes the Chinese industrial core is weakBatzel noted, when peering out of a taxi window, ening, its real-estate boom has fizzled and exports are the power a Chinese brake on the global economy every block in metro China has ongoing construction dropping. In addition, the nation’s once reliably “cheap” could inflict. taking place. The country’s agricultural system is also According to Ooms, in 2013, $1.33 billion in labor force is recording increased wages and rising improving and internal commerce remains strong. exports flowed from the Scranton and Wilkesproduction costs. “Business activity in China is not ‘off the charts,’ “China’s GDP keeps slowing,” says Adams. “The Barre areas to various points around the world. These exports have been growing annually since growth was 6.8 percent during the fourth quarter Please see COVER STORY, Page 12 By Dave Gardner
TS_CNG/NPBJ/PAGES [B01] | 12/02/15
17:24 | GRAHAMTOM
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