China Economy Turns for Better, Commerce Minister Says in Mexico
“The downward economic trend in April and May this year is pretty obvious,” Chen told reporters at a briefing in Los Cabos today. “I personally think that the June situation is turning for the better” after the central government moved to boost consumption, he said.
China’s first interest-rate reduction since 2008 this month highlighted the threat to the economy from budget cuts in Europe that are constraining demand for exports. Chen said that his nation’s goal of 10 percent growth in trade this year is “still possible” if the European debt crisis can be contained in the second half.
Economists are paring forecasts for China’s growth, with Credit Suisse Group AG (CSGN) seeing a 7.7 percent expansion this year, the weakest pace since 1999. A slowdown in investment and curbs on home purchases have added to weakness in exports in cooling the economy.
Chen urged nations to avoid trade protectionism, as disputes simmer between the U.S. and China. The Asian country doesn’t provide adequate data about subsidies and other government assistance it gives to its domestic industries, the World Trade Organization said in a June 12 report.
Leaders of the G-20 nations are meeting in Mexico for a two-day summit dominated by the financial crisis in Europe.
--Regina Tan, Nerys Avery. Editors: Paul Panckhurst, Scott Lanman
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