China sets 7% growth target for manufacturing as sector falters

SHANGHAI - China has set a target to achieve 7% annual growth for its manufacturing industry during the 2016-18 period, the National Development and Reform Commission said. A statement jointly issued by the planning agency and the Ministry of Industry and Information Technology said also that a goal of 15% annual growth has been set for technology investment over the period.

The expansion is necessary to ensure implementation of 10 major industrial projects in the digital, automation, clean-tech and advanced service industries, the statement said. The projects will require financial and policy support from the Government, research institutions and industry associations, it said.

The growth targets are “expected to be achieved through the application of computerised systems within China’s manufacturing sector, and increased investment in the Internet of Things and cloud-computing services”, the statement said.

The Shanghai Daily, in reporting the targets, said, however, that there is a lot to ground to cover in the wake of months of decline for China’s manufacturing sector:

Last month’s Caixin China Purchasing Mangers’ Index, a measure of business conditions for China’s manufacturers, continued to deteriorate in April from March’s reading of 49.7 to 49.4 points, with total new orders stagnating and new export orders falling for the fifth month in a row.

The latest statistics suggest the Chinese economy is still slowing down, said He Fan, chief economist at Caixin Insight Group: “These fluctuations indicate the economy lacks a solid foundation for recovery and is still in the process of bottoming out,” said He. “The Government has to keep a close watch on risks of a further economic downturn.”  www.webershandwick.cn (ATI).