'Hard' efforts & # 39; to achieve the goal of industrial production for 2019

The Chinese Ministry of Industry said Tuesday that "big efforts" would be needed to achieve this year's industrial production growth target, with trade protectionism weighing on exports and darkening the outlook for the economy. second world economy.

Ongoing reforms and restructuring of the country's industrial sectors pose additional challenges, Vice Minister of Industry and Information Technology Xin Guobin told reporters on Tuesday. a press conference in Beijing.

China's economic growth slowed to 6.2% in the second quarter, the weakest pace in at least 27 years, as domestic and foreign demand weakened in the face of growing trade pressure American.

Beijing said it could still reach its growth target of between 6% and 6.5% for 2019 and that it was continuing to put in place stimulus measures to support the activity.

China has set an industrial output growth target for 2019 of 5.5% to 6.0%.

Output growth fell to a 17-year low of 5.0% in May from the previous year but rebounded to 6.3% in June. Nevertheless, badysts do not know if the gains will be sustainable, with the Sino-US trade war raging and factory surveys showing that new orders continue to contract.

Production rose 6 percent in the first half of the year, Xin added, adding that the country still faces significant challenges in stabilizing production, due to the sharp decline in growth. exports of industrial products.

Trade pressures have intensified since Washington sharply increased tariffs on Chinese products in May. Although both sides have since agreed to resume trade negotiations and refrain from taking punitive action, they still disagree on important points needed to reach an agreement.

The long trade war is forcing some Chinese and foreign manufacturers to transfer capacity to neighboring countries and rebuild their supply chains outside of China.

Companies that relocate their production are normal and market-compliant, Xin added, adding that the impact of such measures on China's economic growth, labor market and industrial upgrading was generally manageable.

In southern Guangdong, 588 foreign manufacturers have adjusted their capacity and moved to Vietnam, Thailand or Malaysia last year, but they accounted for only 1.44% of all foreign manufacturers in the province. added Xin.

China will help ease the pressure on companies to relocate their production, advance key technologies and strengthen the ability of Chinese companies to withstand shocks, said another official from the Ministry of Industry.