China Expects Industrial Production to Stabilize in 2020

Minister of Industry and Information Technology Miao Wei expressed hope that China would be able to keep industrial production levels steady

China's industrial production expected to stabilize in 2020

Minister of Industry and Information Technology Miao Wei expressed hope that China would be able to keep industrial production levels steady through 2020 despite pressures faced by trade tensions. The government’s move to offer policy support and cut taxes should help support the stabilization of industrial production.

Unlike the rest of the year, industrial production witnessed a surge in December, expanding 6.9% YoY and bringing the overall expansion for 2019 to 5.7%, within the government’s expected target for a growth of 5.5%-6.0%. Weighed down by the trade war with the US, the Chinese government had rolled out stimulus measures to boost domestic demand even as exports declined amid tariff hikes.

Miao made these comments at a news conference earlier today, adding “Looking forward to 2020, industrial development faces many difficulties and risks. The pressure on stabilising industrial growth is still big.”

Despite the US and China making some progress with the signing of the phase one trade deal, the Chinese government is expected to roll out more tax cuts and fee reductions to support the ailing manufacturing sector this year. In 2019, cuts in taxes and fees had cost the government more than 2 trillion yuan.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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