News / Economy

    China's Economy Continues Decline

    FILE - An employee works on an assembly line producing Mercedes-Benz cars at a factory of Beijing Benz Automotive Co. (BBAC) in Beijing. Observers say last month's PMI may have been affected by the annual Lunar New Year holiday, when factories traditionally shut down and workers return home.
    FILE - An employee works on an assembly line producing Mercedes-Benz cars at a factory of Beijing Benz Automotive Co. (BBAC) in Beijing. Observers say last month's PMI may have been affected by the annual Lunar New Year holiday, when factories traditionally shut down and workers return home.
    VOA News

    New figures released Tuesday shows activity in China's manufacturing sector has fallen to its lowest level in four years, the latest sign of weakness in the world's second-largest economy.

    The official Purchasing Manager's Index, or PMI, which tracks activity in factories, dropped to 49.0 in February, down from the 49.4 figure posted the month before.  Any reading above 50 signals expansion, while a reading below 50 indicates contraction. It was the seventh straight month of contraction in the official PMI, and the lowest reading since November 2011. 

    A separate PMI survey by the private Caixin financial media company, which focuses more on smaller firms, came in at 48, the 12th consecutive month of contraction.

    FILE - A closed brick factory building on the outskirts of Beijing, China. The official Purchasing Manager's Index, or PMI, which tracks activity in factories, dropped to 49.0 in February.
    FILE - A closed brick factory building on the outskirts of Beijing, China. The official Purchasing Manager's Index, or PMI, which tracks activity in factories, dropped to 49.0 in February.

    Observers say last month's PMI may have been affected by the annual Lunar New Year holiday, when factories traditionally shut down and workers return home.

    China's economy grew at an annual rate of 6.9 percent in 2015, its slowest pace in 25 years, due to manufacturing overcapacity and further contractions in domestic and export orders.  The slowdown comes as the country struggles to transition from an export-driven economy to one sustained by consumer demand.

    Tuesday's news could spur policymakers in Beijing to launch another round of stimulus spending and boosting the money supply.  The People's Bank of China late Monday announced it was cutting the amount of cash that banks must hold as reserves by as much as 50 basis points.  The PBOC also injected an estimated $100 billion in cash into the banking system to spur new lending.

    You May Like

    UN Observes International Day of Peacekeepers

    The U.N. honors 3,400 peacekeepers killed since first mission in 1948

    Video Rolling Thunder Tribute to US Military Turns into a Trump Rally

    Half-million motorcycles are expected to rumble Sunday afternoon from Pentagon to Vietnam War Memorial for rally in event group calls Ride for Freedom

    The Struggle With Painkillers: Treating Pain Without Feeding Addiction

    'Wonder drug' pain medications have turned out to be major problem: not only do they run high risk of addicting the user, but they can actually make patients' chronic pain worse, US CDC says

    This forum has been closed.
    Comment Sorting
    Comments
         
    by: Marcus Aurelius II from: NJ USA
    March 01, 2016 1:14 PM
    A lot of people are still in denial. Denial is not a river in Egypt. It is refusal to see a sham for what it is. It's clinging to an illusion of what was made to appear as some sort of super power when in fact it was really a stupid power that was America's greasy back room cheap sweatshop for producing its products at very cheap labor costs and no consideration for the environment.

    It's about a nation that wasted the huge pile of crumbs it accumulated on cities that its citizens couldn't afford to live in and on a military that needlessly and stupidly threatens its enemies and has made some new ones, most notably the US. One thing China cannot do is pay off Donald Trump to keep American corporations from bringing jobs back to the US.
    In Response

    by: william li from: canada
    March 01, 2016 3:08 PM
    last time I checked that China's GDP is about half that of US's, and China's spending on military is one sixth of US's. So who is wasting more money on stupid military?
    Who is cause chaos all over the world?

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Chinese-Americans Heart Trump, Bucking National Trendi
    X
    May 27, 2016 5:57 AM
    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Chinese-Americans Heart Trump, Bucking National Trend

    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Reactions to Trump's Success Polarized Abroad

    What seemed impossible less than a year ago is now almost a certainty. New York real estate mogul Donald Trump has won the number of delegates needed to secure the Republican presidential nomination. The prospect has sparked as much controversy abroad as it has in the United States. Zlatica Hoke has more.
    Video

    Video Drawings by Children in Hiroshima Show Hope and Peace

    On Friday, President Barack Obama will visit Hiroshima, Japan, the first American president to do so while in office. In August 1945, the United States dropped an atomic bomb on the city to force Japan's surrender in World War II. Although their city lay in ruins, some Hiroshima schoolchildren drew pictures of hope and peace. The former students and their drawings are now part of a documentary called “Pictures from a Hiroshima Schoolyard.” VOA's Deborah Block has the story.
    Video

    Video Vietnamese Rapper Performs for Obama

    A prominent young Vietnamese artist told President Obama said she faced roadblocks as a woman rapper, and asked the president about government support for the arts. He asked her to rap, and he even offered to provide a base beat for her. Watch what happened.
    Video

    Video Roots Run Deep for Tunisia's Dwindling Jewish Community

    This week, hundreds of Jewish pilgrims are defying terrorist threats to celebrate an ancient religious festival on the Tunisian island of Djerba. The festivities cast a spotlight on North Africa's once-vibrant Jewish population that has all but died out in recent decades. Despite rising threats of militant Islam and the country's battered economy, one of the Arab world's last Jewish communities is staying put and nurturing a new generation. VOA’s Lisa Bryant reports.
    Video

    Video Meet Your New Co-Worker: The Robot

    Increasing numbers of robots are joining the workforce, as companies scale back and more processes become automated. The latest robots are flexible and collaborative, built to work alongside humans as opposed to replacing them. VOA’s Tina Trinh looks at the next generation of automated employees helping out their human colleagues.
    Video

    Video Wheelchair Technology in Tune With Times

    Technologies for the disabled, including wheelchair technology, are advancing just as quickly as everything else in the digital age. Two new advances in wheelchairs offer improved control and a more comfortable fit. VOA's George Putic reports.
    Video

    Video Baby Boxes Offer Safe Haven for Unwanted Children

    No one knows exactly how many babies are abandoned worldwide each year. The statistic is a difficult one to determine because it is illegal in most places. Therefore unwanted babies are often hidden and left to die. But as Erika Celeste reports from Woodburn, Indiana, a new program hopes to make surrendering infants safer for everyone.
    Video

    Video California Celebration Showcases Local Wines, Balloons

    Communities in the U.S. often hold festivals to show what makes them special. In California, for example, farmers near Fresno celebrate their figs and those around Gilmore showcase their garlic. Mike O'Sullivan reports that the wine-producing region of Temecula offers local vintages in an annual festival where rides on hot-air balloons add to the excitement.
    Video

    Video US Elementary School Offers Living Science Lessons

    Zero is not a good score on a test at school. But Discovery Elementary is proud of its “net zero” rating. Net zero describes a building in which the amount of energy provided by on-site renewable sources equals the amount of energy the building uses. As Faiza Elmasry tells us, the innovative features in the building turn the school into a teaching tool, where kids can't help but learn about science and sustainability. Faith Lapidus narrates.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8954
    JPY
    USD
    109.65
    GBP
    USD
    0.6827
    CAD
    USD
    1.3037
    INR
    USD
    67.037

    Rates may not be current.