China's Factory Contraction: A Wake Up Call for Beijing's Export Dependent Growth Model The latest data from China's National Bureau of Statistics should serve as a stark reminder to policymakers in Beijing that their country's economic growth model is on shaky ground.
The official manufacturing purchasing managers index (PMI) has slipped into contraction, marking the first such decline in five months.
This unexpected downturn comes at a time when China's economy was already struggling with sluggish domestic spending and investment. The PMI fell to 49. 2 from 50.