Chinese President Projects Positive Picture of Economy while Manufacturing Sector Hits 6 ½ Year Low

Published Date : Sep 23, 2015

President Xi Jinping has backed the Chinese government’s recent decisions related to economic policy. He stressed that the government’s timely intervention avoided panic among the investors in the stock market and added further that there were no plans to involve in a currency war or lower the exchange rate to propel exports from China. In Seattle, he pledged to work with the U.S. government in curbing cyber-crime and dismissed talks about his anti-corruption campaign as part of the ruling Communist Party’s power struggle. 

Speaking to a gathering of business executives on the first day of his current tour in the U.S., Mr. Xi stated that the Chinese economy has become stable and the economic growth rate of 7% is well within proper range. He further added that the economy will remain steady with fairly rapid growth. However, contrary to his comments, the Caixin Flash Manufacturing PMI reflected that the manufacturing activity hit the lowest mark in past six and half years, even though the government has taken efforts to ease credit.

Though National Development and Reform Commission, the top economic planning agency in China is confident that the target growth rate of 7% would be met, experts and analysts are concerned about the economic outlook of the country. NDRC has pointed out that even though the traditional manufacturing sector has slowed down, high technology sectors are performing well. The planning agency is expecting that the economy will be boosted in the second half of the year owing to tax cuts, lower interest rates, and government spending. In his first state visit to the U.S. as a president, Mr Xi wants to project the positive image of Chinese economy in the coming days while meeting with executives from top companies such as General Motors, Apple Inc., and Berkshire Hathaway.