Published By : 12 Oct 2015 | Published By : QYRESEARCH
Post the recent slowdown witnessed in the Chinese manufacturing sector, the country's goal to attain economic growth at 7% seems much shaky. Threatened by impending structural changes, the manufacturing industry in China is bespattered by plummeting demand.
Against the backdrop of present scenario, the request by a leading construction equipment manufacturer in China, called Sany Heavy Industry to get delivered the steel shipment in kind, and excavator and other machinery equipment in cash, surprised an executive at a steel maker. The incident occurred during July, 2015. It didn't take time for economists to identify the reason behind such request. During the months between January and June Sany witnessed a plunge in profit by more than 70%, amid the decline in demand. This left the company at a money crunch.
Wuhan Iron and Steel, which is a state owned company reassigned almost 45 lathe workers and welders to Wuhan Chemical Industrial Park in September, where they served as ''auxiliary police officers''. With the slowing output, there are chances that the company might reassign over three hundred more employees.
During the first half of the year from January to June, the economic growth of China clocked in at 7%, just within the range of the growth target by the government. Chinese Premier Li Keqiang, however remained confident about China being able to meet its growth target. However, the economic conditions are tougher than what is indicated by the statistics.
About more than half of China's population, that totals approximately 750 million people, travelled during October 1st that marked the National Day holiday week, as reported by the Chinese media. While the middle income people in China, whose disposable income is increasing by 8% every year did contribute to an extent, however the same is not sufficient to bolster the overall growth rate of the economy.