China 'to add more to global growth'

In the second quarter, GDP growth in the world's second-largest economy slowed to 7.5 percent from 7.7 percent in the first.

On Thursday, the National Bureau of Statistics said the July purchasing managers index hit 50.3, up from a five-month low of 50.1 in June.

This ended a decline for three consecutive months, indicating that the manufacturing sector, which accounts for about 40 percent of overall GDP, is expanding at a moderate pace.

It was the 10th month running in which the index reading stayed above 50, the point that separates expansion from contraction.

The PMI figures shored up the stock market on Thursday, with the Shanghai Composite Index increasing by 1.8 percent to 2,029.07, the largest rise for a week. The shares of about 40 enterprises on the Shanghai and Shenzhen exchanges reached the 10 percent daily increase ceiling.

Wang Tao, chief China economist at UBS, said the country is likely to achieve 7.5 percent growth this year, and a rebound may come in the third quarter.

Wang doesn't expect visible policy stimulus measures in the second half, although the government has announced several fine-tuning measures to stabilize growth.

Tao Dong, a senior economist in Hong Kong at Credit Suisse, said the government has the ability to shore up GDP growth and meet its target this year, but the figure is less important than improving the quality of economic development and efficiency.

The growth rate, whether it is 7.5 percent or 7 percent, will still see China as one of the fastest developing economies in the world, he said.

In the second half of this year, debt issues may continue to plague the eurozone unless the indebted countries take moves to redress fiscal balance; the Japanese economy seems to be losing momentum despite the strong stimulus; and the United States may see a slight rebound which could lead the Federal Reserve to start reducing quantitative easing from September, according to Tao.

Zhang Bin, general manager of Shanghai Solid Stainless Steel Products, a manufacturer and exporter, said it is essential for the company to minimize production costs based on its own advantages.

Contact the writer at chenjia1@chinadaily.com.cn