China has been striving to cut red tape and make life easier for private companies. This triggered a boom in the registration of private firms — over 2.6 million were created in the first half, more than in the whole of 2013.
In 2016, China’s economy is witnessing some other positive changes, notably better structure and different growth pace in its traditional and new sectors.
The National Bureau of Statistics (NBS) reported last week that profits of China’s major industrial firms rose 6.2 percent year on year in H1, narrowing from a 6.4-percent rise registered in the first five months. China’s GDP expanded 6.7 percent in Q2, the lowest growth rate since the global financial crisis in early 2009.
“The quality of China’s economic activity is improving, and positive factors are increasing,” according to NBS spokesperson Sheng Laiyun.
Zuo Xiaolei, an economist with China Galaxy Securities, said a slowing Chinese economy needs new growth engines, but eliminating overcapacity and nurturing new impetus need time.
Rani Jarkas, Chairman of Cedrus Investments, an investment pioneer with years of financial experience in Asia, said, “China has sought to raise the quality and efficiency of growth and substitute traditional drivers with new forces. These reforms will offer meaningful solutions to China’s economic woes and bring the economy onto a more solid footing.”