What Are the Key Challenges Facing China?

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July 24 (Bloomberg) -- Bloomberg's David Ingles reports on the stories that are making headlines in Asia. He speaks with Mark Crumpton on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

Good day.

Good evening.

We officially start our monthly data watch in china with pmi numbers released on was safe for the month of july.

47 .7. we were expecting it to fall but not by this much.

Anything below 50 shows a contraction.

47.7 was the number.

We were speaking with the chief china economist at hsbc and he said the key challenge is confidence.

Both in financial markets and across the business community.

It is an initial reading and the final number comes out -- hsbc asked for the official number, which comes out the same day from beijing.

If you want to talk about the drives to the economy, beijing announced yesterday a ban on all new buildings in the next five years and it is part of the austerity measures and any efforts to reallocate these government resources to socially focused financing.

The key take away here, china is more prudent in how it spent its money.

Unlike the past four years when it was spending and boosting government spending to boost growth.

Joe biden has been holding meetings in india this week.

What can you tell us?

That is right.

He has been there for the past two days, speaking with the prime minister there and business leaders.

This time, he made a speech yesterday he called on them to open up their economy to more foreign investment and a call on them to improve protection for intellectual property and in his words, take medicine to address their country's economic problems.

On that note, i want to put some context into this.

This text has been automatically generated. It may not be 100% accurate.

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