Improvements in China’s economy are achieving a momentum that is no longer totally dependent on the government's massive stimulus program, says The Wall Street Journal.
The newspaper reports that economic data for the third quarter scheduled for release today are expected to show that gross domestic product grew by around 9% from a year earlier.
Su Qisen, vice president of Xiangxing Bag & Luggage Group, located in southeastern Fujian province, told the Journal that export orders started to rebound around June but Chinese consumers are also proving more willing to spend on the company's purses, suitcases and backpacks. Su revealed to the Journal that he plans to hire 4,000 to 5,000 more employees in the next few months to work on 10 new assembly lines.
That kind of corporate spending on new hires and equipment, if sustained, could help China's growth rely less on easy bank lending and government stimulus projects, notes the Journal.