“China’s economic performance in the second quarter has improved from that in the first quarter. However, we cannot lower our guard against downward pressures,” Chinese Premier Li Keqiang said in a news conference with German Chancellor Angela Merkel who is visiting China.
“The Chinese economy is also facing downward pressure, but we will keep up our composure and not adopt strong stimulus,” Li said.
China’s economic growth faced an 18-month low in the first quarter of this year that forced the government to cut taxes, ordered regional governments to speed up spending and reduced the amount of cash that some banks have to hold as reserves.
Growth in China’s manufacturing sector slowed in the past quarters due to weak demand for Chinese exports.