China’s economy has been hurt by weak world demand for Chinese exports, a recent stock market collapse and China’s surprise devaluation of its currency, the yuan. Weak world demand makes it unlikely the government can meet its trade growth target of 6 percent for this year. Experts are predicting a slower decline in the Chinese economy into 2016.
A government spokesman told reporters in Beijing that the economy is facing some “downward pressures.” It is moving from an export-driven to a consumer-demand economy.
China’s central bank has cut interest rates five times since November to strengthen the economy. It is battling China’s worst economic slowdown in more than six years. The government also has tried to reduce Chinese dependence on trade and investment. It wants Chinese consumers to spend more. Manufacturing companies are shrinking and getting rid of millions of jobs. Businesses targeting consumers are expanding.
