Chinese leaders have repeatedly tried to reassure jittery financial markets and China’s major trading partners that Beijing is able to manage the slowing economy, following a slide in the country’s stock market and depreciation of the yuan.
Recent data, until early March, including fixed-asset investment and employment, showed that the economy is improving, vice-premier Zhang Gaoli told a high-level economic forum.
‘We don’t want to shy away from saying that China’s economy is facing downward pressure, but overall the progress is steady,’ he said.
China’s manufacturing output in January and February grew at its weakest pace since 2008, according to data released by the National Bureau of Statistics earlier this month.
Central bank governor Zhou Xiaochuan told the same forum that capital outflows out of China have showed a significant easing, citing an abating of concerns about a slowdown in the world’s second-largest economy.
Recent data showed net foreign exchange sales by the central bank and commercial banks dropped in February as the yuan stabilises, partly due to the dollar’s broad retreat as expectations cool on further interest rate rises by the US Federal Reserve.
Commerce minister Gao Hucheng told the forum China’s foreign trade was likely to show a big rebound in March after falling in the first two months of the year.
The central bank’s Zhou said some short-term speculative money may be leaving China, a reversal of the trend a few years ago when China saw big capital inflows, but such money flight was not worrisome.
Analysts say China’s central bank still faces a tough job stemming capital outflows, citing persistent downward pressure on the world’s second-largest economy.
source : the new age