China News Review published an opinion article about China’s current economic environment. According to the article, from July 13 to 15, Premier Wen Jiabao visited Chengdu City in Sichuan Province, where he held a forum on the current economic climate in Henan, Hunan, Guangxi, Sichuan and Shanxi provinces. According to Wen, China’s economic growth rate is in a steady and stable state and still within the expected target set at the beginning of the year. However, the current economic climate is not showing signs of improvement. The economic difficulties are expected to continue for an extended period of time.
China News Review cited figures that the Ministry of Statistics published, saying GDP for the first half grew 7.8 percent, down from 8.1 percent in the first quarter. GDP for the second quarter grew 7.6 percent, falling below 8 percent for the first time in three years. The official June Purchasing Manager’s Index reached 50.2, an indication that there is still growth in the manufacturing sector. The article stated, “The statistics for the second quarter suggest that China’s economy is facing tougher challenges than expected and will not see signs of recovery very soon.”
Source: China News Review, July 17, 2012