China’s Industry Shrinks Slightly

The Chinese economy is not immune to the global economic slowdown. In September, the business of the industrial sector went down slightly.

China’s industries continue to receive the economic slowdown which is felt globally. In September, the business sector shrank for the third month in a row, as on Friday emerged from the purchasing managers’ index of major bank HSBC. The barometer remained at the August level of 49.9 points and missed just once again the growth threshold of 50 points. Values below 50 indicate generally point to a shrinking economy.

Significantly more imports

Because the country has imported more in the first half, the trade surplus in the country has fallen by almost a third to 87.8 billion U.S. dollars. The quota amounts to 2.8 percent of GDP, as emerged on Friday from official statistics. It was still 3.5 percent in the first quarter.

China has long been under criticism, especially the U.S., for maintaining a low rate of the national currency, the yuan based on its own exports and thus exacerbate the imbalance in world trade.

China holds the world’s largest foreign currency reserves. In June it was 3.2 trillion dollars. These stocks declined in the second quarter by 9.8 billion dollars, according to calculations based on figures of the Chinese authorities and the Central Bank, while currency fluctuations and valuation adjustments together create the reserves of 59.4 billion dollars in the first three months.