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China a threat to global economy: France

China's faltering growth poses a threat to a recovery in the global economy, France's economy minister Emmanuel Macron said on Tuesday, calling for urgent action to bolster the eurozone.

China a threat to global economy: France
An investor looks at screens showing share prices at a securities firm in Qingdao, in eastern China's Shandong province . Photo: AFP
“The world economy is recovering but not as much as we wish. It's a very long process. On the one hand, we have opportunities… but on the other hand, there are many risks, particularly China today,” he told a conference of German ambassadors in Berlin.
   
“In its in our interest that China succeeds” its transition from an export-heavy economy to a new model of growth, he said.
   
Macron however pointed out that other emerging giants like Russia, Turkey and Brazil were experiencing far greater economic difficulties at the moment.
   
“All this makes it all the more important to have a eurozone that is strong and stable,” Macron said.
   
Speaking in Paris on Tuesday, France's President Francois Hollande said that he “trusts” China can overcome the financial crisis.
 
A day earlier, he had assessed that the world economy was “strong enough” to withstand any shock from China's slowing growth.
   
Fears over a downturn in the world's second biggest economy set off panic selling around the globe on Monday.
   
The rout continued on Tuesday in some Asian bourses including Shanghai and Tokyo, but European markets rebounded as investors returned for bargain hunting.
   
Slowing growth in Asia's largest economy has long kept investors on edge but China's shock devaluation of the yuan two weeks ago, following a string of weak economic data, has riled world markets.

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ECONOMY

French government delays launch of €100bn recovery plan

The French government said Saturday that it will unveil a week later than originally planned a 100-billion-euro ($118 billion) plan to nurse its coronavirus-stricken economy back to health.

French government delays launch of €100bn recovery plan
Paris' Ritz Hotel reduced to selling takeaway rolls when closed during France's lockdown. Photo: Alain Jocard/AFP
Businesses had eagerly awaited details of the new shot in the arm for the eurozone's second-largest economy, trailed for August 25, and government spokesman Gabriel Attal said it was “ready”.
   
But for now “the government is completely mobilised to prepare for the health deadline” of September 1, when pupils return to school and many workers will be back from summer holidays, Attal said in a statement.
 
   
Groundwork must be laid, including a nationwide requirement to wear masks in workplaces and secondary schools, he said, adding that President Emmanuel Macron wants ministers working “to make sure these measures are applied properly and allow everyone to adopt them”.
   
Only then will the economic plan be presented “in the first week of September”.
   
Paris is sticking to its aim of returning French GDP to the same level as before the coronavirus pandemic by 2022, Attal said.
   
Fears have been growing in recent days that France could be struck by a second wave of the virus, as official figures showed the number of newly-detected cases had mounted to almost 4,600 in the 24 hours to Friday.
   
But numbers of people hospitalised or in intensive care with the COVID-19 disease have remained relatively stable despite the increase in infections.
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