The Chinese government keeps a firm grip on the national economy. Meanwhile, local firms consider such a steering approach a big problem that triggers capital outflows. In addition, companies are fleeing from the Chinese market. In Shanghai, the China Development Forum hosted representatives of EU and US firms. Chinese policymakers assured foreign investors that China could offer a fruitful business environment. However, some clearly understand the risks and doubt such statements amid the US-China trade wars. Against this backdrop, Chinese industrial output is limping. The demand is decreasing, dragging prices to a five-year low. The PPI shrank by 4.6%, sliding down for the eighth month. The Markit manufacturing PMI has been hovering below 50 for the third month in a row, a sign of pessimism in the sector. According to the National Bureau of Statistics of China, the country’s manufacturing PMI posted 46.4 points in June.
