A recent rally hosted by the Foreign Ministry was aimed at allaying the global concerns over China’s recent slowdowns, where the National Bureau of Statistics briefed rally attendees on the updated state of the economy.
According to the National Bureau of Statistics, China’s economy is showing evidence that stabilization is underway. The speculation main causes for the improvements may have been a combination of policy support and the most recent increase of global demand. New policies also aim to accelerate investments into urban areas as well as railways.
Other factors that have had a direct affect include the decision to do away with taxes for small firms and offering addition assistance to ailing exporters. In addition, rising consumption, increased urbanization and new growth in under-developed regions of the country are not only aiding the stabilization efforts but potentially provide ongoing economic growth.
The Nation Bureau of Statistics spokesman Sheng Laiyun stated that initially the speed of economic growth for China was hindered due to multiple adjustments to structure and a decline in the surplus labor. Officials in Beijing have stated that they are willing to accept the slower economic growth rate as it is focused on the development of new reforms that will reduce pollution and social inequality that post lasting problems for the city.
China’s annual economic growth slowed from the 7.7% to 7.5% in the second quarter, marking the tenth decrease for the nation. Despite these recent successes to stabilize the nation’s growth rate, new concerns are being raised for the future. The slowing rate is increasing pressure on the country’s businesses and local government that are already over the top in debt.
In addition, there is speculation that the credit boom that took place in 2008 may be close to a meltdown, which could prove to be devastating on China’s sensitive economic structure. The China Banking Regulatory Commission has begun proactive steps in preparation for the potential issue working with the country’s securities regulator to encourage the securitization of loans.
Sheng stated in his briefing that while the state of China’s economy looks like it is headed for a more stable future, the central government is placing great attention on the developing problem of future debt. The U.S imported trade goods of over $35 million in June of 2013 and just above $9 million in exports which is a slight decrease from numbers over June of 2012.