Chairman of the Chinese Communist Party Xi Jinping spoke in a televised address to mark the incoming new year.
He made vague comments about supporting the economy:
- China will “consolidate and enhance the positive trend of economic recovery, and achieve stable and long-term economic development,”
- “We must comprehensively deepen reform and opening up, further boost confidence in development, enhance economic vitality, and make greater efforts to promote education, promote science and technology, and cultivate talents.”
- China will promote high-quality development and balance development and security in a well-coordinated way
Xi hasn’t done much to balance development and security. His main focus is on nationalism at the expense of the economy. Let’s see if that changes.
To be fair, China has rolled out stimulus efforts, albeit piecemeal. But, with high and growing debt the days of sweeping stimulus have passed.
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Later today we get the latest manufacturing PMI from China:
Over the weekend we had a very poor official manufacturing PMI released:
There are some green shoots appearing for the economy, The official manufacturing PMI is not one of them.
Make like a tree …
This article was written by Eamonn Sheridan at www.forexlive.com. Source