A prediction made by many China observers early in the year went like this: The Chinese economy would slow through the first half, then Beijing would step on the gas pedal and numbers would start to rebound.The first parts of the prediction are coming true.
The economy has slowed through the first half of the year. The latest GDP numbers were the slowest since the crisis.
And the gas pedal is being pumped.
State direct stimulus spending is starting to crank up again.
And now, according to FT, China has just cut taxes by 50% on foreign entities investing directly in China.
The full on press to lift the economy off of a hard landing is on.
Now we’ll see if the numbers rebound.