China‘s economic engine is losing steam.
Two surveys of manufacturing activity confirm the world’s second largest economy is cooling off, but calls for more economic stimulus might not be able be able to rev it up.
Sources familiar with China’s policy-making say more rate cuts could come as the world’s second largest economy faces the risk of GDP growth dipping below 7% in the fourth quarter.
One number that may worry Chinese leaders—employment. The latest PMI surveys showed the labour market remained under stress.
Social stability is one of Beijing’s top priorities and high unemployment is a big risk.
So expect a revving up of stimulus with any further indication that a slowdown in the factory engine will lead to a large-scale shedding of jobs.
Published with permission from NTD Television