The well-known Chinese financial newspaper The Economic Observer published an article on the Economic Forum that Chinese Premier Li Keqiang hosted on July 11 in Beijing. The Forum, which analyzed the situation of the Chinese economy in the first half of the year, took place before the National Bureau of Statistics released the key index numbers for the first half of 2016. The Forum identified five key concerns that “should not be ignored.” First, investments in the private sector continue to decline. Second, the effort to reduce industrial production capacity faces obstacles. The third concern was the increase in the number of non-performing loans in the banking industry. The fourth one was the worsened difficulties that small and medium sized companies have in obtaining financial help. The fifth concern lies with the uncertainty that developed from the British exit from the European Union. Li suggested in the Forum that both the global and the domestic challenges are generating growing pressure on the Chinese economy and that the government’s structural adjustment strategy will remain the key direction for the second half of the year.
Source: The Economic Observer, July 14, 2016