China’s latest economic stimulus package signals that its government is worried about meeting this year’s 5% GDP growth target, according to a recent research note by ANZ Research.
The concern comes after April’s manufacturing data showed signs of weakness. According to ANZ, new export orders dropped to their lowest level since December 2022. Job conditions in the manufacturing sector also got worse, which could increase unemployment—especially in key coastal provinces like Guangdong, Jiangsu, Shandong, Zhejiang, and Shanghai.
ANZ analysts believe that the timing of China’s stimulus announcement is important. It was made just before trade talks between Chinese and U.S. officials in Switzerland. This move gives some breathing room to Chinese exporters before those talks begin. The Chinese government seems prepared for long negotiations and is showing a firm stance against protectionist trade measures.
In short, China is taking early steps to support its economy, especially exports and employment, as it faces both internal challenges and external trade pressures.
Key Takeaways:
China’s stimulus shows concern about hitting 5% economic growth.
Manufacturing export orders are at their lowest since Dec 2022.
Unemployment risks are rising, especially in coastal provinces.
Stimulus comes just before key U.S.-China trade talks.
China is bracing for long talks and pushing back against protectionism.
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