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China factory output in fresh stumble
01.09.08
China's manufacturing output has shrunk for the second month in a row, underlining fears of a slowdown in the powerhouse economy that could have a knock-on effect for the rest of the world.
GDP growth has cooled for four quarters and policymakers are turning their focus from fighting inflation to boosting spending.
Tax cuts and a public-works spending spree are planned as international economists warn of a possible post-Olympics slump.
A plan awaiting approval from the State Council and the National People's Congress includes
220 billion yuan (£17.6 billion) of spending and 150 billion yuan of tax cuts. China has tripled railway spending to 300 billion yuan.
