China needs painful structural reforms as economy slows

20150917_vehicles move along in beijing

Vehicles move along an assembly line at a plant in Beijing, a joint venture between German automaker Daimler and BAIC Motor. Auto dealers in China are continuing their price-cutting competition in the face of excess production by automakers.

WATARU KODAKA, Nikkei staff writer

SHANGHAI -- The Chinese economy is showing more signs of a slowdown, making it imperative for the administration of President Xi Jinping to implement painful structural reforms while damping down confusion and anxiety resulting from the slowed growth.

     Although total retail sales of consumer goods keep growing at a rate of around 10% in China, production cutbacks are increasing in the manufacturing sector, which is mired in acute overcapacity. This is generating adverse effects on employment.

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