Despite the tariff war with the United Sates China's economic growth had been steady in the latest quarter and the efforts by Beijing to reverse a slowdown have started to gain traction.
The second-largest economy in the world had expanded by 6.4% over a year and in the three months ending March, according to the government. That has matched the previous quarter for the weakest growth since 2009. A JP Morgan Assessment report says this confirmed that China's economic growth was bottoming out and this momentum is likely to continue.
This revival could have global implications, because this growth and Chinese demand for imports could help to shore up weakening economic activity. Beijing is the biggest export customer for its Asian neighbors and a huge market for autos, mobile phones and other consumer goods, food and industrial technology.
Its leaders stepped up spending last year and had instructed banks to lend more after economic activity weakened, raising the risk of politically dangerous employment losses. This Chinese move to reverse course temporarily on its campaign to rein in rising debt has started to yield results, said an expert at JP Morgan. Consumer spending, factory activity and investment have all accelerated in March. And the Chinese Bureau of Statistics reported these are 'growing positive factors.'