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Chinese Manufacturing Industry Is Wobbling

Chinese manufacturing industry is facing disappointment once again as the country’s manufacturing PMI (Purchasing Managers’ Index) was unable to meet expectations. The PMI which was expected to be 50.5 came at 50.3. Any number below 50 indicates that country’s manufacturing sector is contracting.

The current situation posed threat and was considered as a worrisome trend for the country. In October the PMI which was expected to be 51.1 turned out 50.8. President Xi’s administration is in hot waters as they are being considered responsible for the slowdown in the economy. They didn’t seem much bothered even when the country missed its GDP target by 7.5%.

However, these numbers of PMI miss can upset the market once again. The corporate sector of China is over burdened with debts and it passes this burden to Chinese banks. Analyst Wei Yao explained this in his note saying: “China’s debt problem lies with the corporate sector,” he further added, “The cure should be capacity consolidation and debt restructuring, rather than another stimulus package targeted to boost investment demand.”

Adding more to these deteriorating conditions, the government ordered to shut down factories in Beijing and its surrounding regions during Asia-Pacific Economic Cooperation Forum to control pollution. The central bank of China cut the interest rates last month because the economy is heading for its slowest expansion since 1990.

Marketing Evangelist, Dreamer, Idea Artist, Aspiring Entrepreneur, and Educationist at Heart these are some of attributes that best define myself. I love to read about technology, entrepreneurship, and autobiographies. Owing to the content creation specialty posses the natural flare for creative and academic writing. Right now head of a wonderful team at Phonebook Online.

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Chinese Manufacturing Industry Is Wobbling

Chinese manufacturing industry is facing disappointment once again as the country’s manufacturing PMI (Purchasing Managers’ Index) was unable to meet expectations. The PMI which was expect...