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Chinese economy remains stable

Updated: Jun 15,2016 10:55 AM

China’s economic fundamentals remain stable and indicators continue to show growth, according to data released by the National Bureau of Statistics on June 13.

“Production, market, employment and prices all remain stable,” Sheng Laiyun, the spokesman for the NBS, said at a news conference.

Data shows that industrial production increased 6 percent in May year-on-year, which is the same as April. The income of producer services rose 9.4% and high-tech services increased 13.2% in the Jan-April period, 0.4% higher than the first quarter, respectively. CPI increased 2% year-on-year in May, 0.3% lower than that in April.

According to the data released by Ministry of Human Resources and Social Security, 5.77 million jobs were created from January to May, having achieved 57.7% of the annul target.

Meanwhile, China’s industrial structure continues to upgrade, the NBS said. Service industry is growing faster than manufacturing, which means that service sector is accounting for more share of GDP. And, high-tech and advanced equipment manufacturing industry are growing fast, increasing 11.5% and 8.5% respectively in May. “The data shows that China is striding towards high-end manufacturing industry at a higher speed,” Sheng Laiyun said.

The private investment growth, meanwhile, is slowing, growing just 3.9% from January to May, 1.3% lower than that from January to April. According to Sheng, the deceleration of the private investment growth shows that the economy still lacks of endogenous impetus.

He also said that the government has sent nine inspection groups to 18 provinces and cities to find solutions to this problem.

However, although investment growth is slowing down, the investment structure keeps being optimized. The investment in high-tech and service industry is accelerating, while the investment in energy-intensive and over-capacity industries is slowing down.

“The optimization of investment structure is more important than its growth rate,” Sheng said. He added that the downward pressure doesn’t necessarily mean an economic downturn, because the impetus of Chinese economy has been changing. In the past, the growth relied, to a great extent, on investment and export, but now consumption is making larger contribution. Therefore, “apart from boosting investment, creating consumption potential is also a key factor to the smooth and fast economic growth,” Sheng said at the news conference.

When asked about the economic trend in the second half of 2016, Sheng said that although Chinese economy faces much pressure from home and abroad, it will remain stable in the second half.

“We must implement the supply-side reform, boost innovation and support real economy, and make sure that social-economic target of this year are achieved,” Sheng Laiyun said.