#China has taken a series measures to boost #manufacturing industry in recent years as economic growth slows down.The latest moves were cutting #VAT &
introducing more credit to manufacturers. Thanks to these measures, the
industry has seen some rebound lately,according to Wu Ge.
However,#credit cost is still very high for #SMEs, who are the main components of #manufacturing,according to the credit spread between #SOEs and SMEs, which rose slightly following the Baoshang #Bank issue. mp.weixin.qq.com/s/9fxogwIAw1go…
While the efforts to reduce over-capacity over the past few years have helped lessen the burden for manufacturing, a weak aggregate demand along with the global economic slowdown are still dragging down the performance of manufacturing. #economics
Manufacturing #investment could remain depressed for some time and still under pressure to get #finance due to previous measures to reduce leverage and regulators’ concern over #bank liquidity, though there is still room for the lending rate to go down.
However, manufacturing may not be the biggest problem to #Chinese #economy, which accounts for a larger proportion in #GDP compared with other countries. Instead, the share of #service industry in total economy is still quite low.
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