After seven consecutive quarters of dropping figures, the Chinese economy has registered figures which have delighted the world. The fall has been halted, and President Wen Jibao announced the economic activity has stabilised. The first signs of a turnaround are the increasing Industrial Output, increasing consumer confidence, exports which are also starting to improve.
Steps taken earlier, such as reducing the benchmark interest rate, have had the desired impact, but the option of further easing remains on the cards, should it prove necessary.
A word of caution may be added : The price of Oil will have to be affordable for the Chinese economy to head for sustained growth. My opinion is that WTI at $85 or under and Brent ICE at $100 or under is essentail. The fall in sales and production of cars in Europe are a reminder of what happened before the last global slowdown, which seems to have just been overcome. Necessary discounting of European cars and clothing tell their own story.
The soft landing in China should give hope to the watchers of the global economies.