Leadership speaks of "new problems and new challenges": debt, the slowdown in growth, the tariff war with the US. Only marginal adjustments are planned. The PMI (the growth of manufacturing) in July, dropped to 51.2, the lowest value in the last five months.
Beijing (AsiaNews) - Politburo, the apex of power in China, promises to maintain economic stability, seeking to reduce debt and to face challenges such as slowing growth and an increasingly severe tariff war with the United States.
Yesterday's Politburo meeting was held under the chairmanship of Xi Jinping. In the end, a declaration was issued that speaks of "new problems and new challenges" and "obvious changes in the external environment".
In the last year the country has shown signs of slowing down and at the same time the volume of credits reduced, which in the past have been used as a stimulus to the economy . This has led to difficulties for many companies who have increasingly turned to the so-called "shadow banks" for unofficial loans.
The Politburo, echoing the Council of State, said that it will strengthen tax reform, seek to stabilize the labor market, improve the financial and trade system.
The statement adds that China will increase investment in infrastructure, support innovation, reduce business costs and revitalize campaigns. Analysts contacted by the economics magazine Caixin have said that leadership does not foresee major changes, but only marginal adjustments.
In the second quarter, the Chinese economy grew by 6.7%, the lowest growth since July-September 2016. Yesterday, the National Bureau of Statistics released the PMI figures (the growth of manufacturing) in July, which fell to 51.2, the lowest value in the last five months.
Among the reasons for this slowdown, the Office lists "unfavorable weather conditions", which have led some factories and mines to halt production, and the volatility of the value of the yuan, along with increasing frictions in international trade, which has caused a reduction in the export and import of raw materials.