With a host of key growth indicators at their lowest points for a number of years, Tuesday's release of the HSBC flash manufacturing purchasing managers' index, which fell to an 11-month low and came in below even pessimistic forecasts, has spurred a new wave of pessimism over the state of China’s economy.

 

Although China's economic growth slowed to its lowest level in 24 years, the 7.4-percent rise is the envy of most other nations and the economy still enjoys sound fundamentals as job creation and income growth continue to rise.

 

Policy makers have the firepower to avert a hard landing and will not hesitate to intervene if the slowdown caused widespread unemployment or a drop in citizens' incomes.

 

In the short term, policy makers could employ mini stimulus measures, such as reserve requirement ratio and interest rate cuts and tax reductions, to ensure growth does not slide below the lower limit of a reasonable range.

 

Plans are also in place to engineer longer-term development. Comprehensive reform and three major strategies -- construction of the "Belt and Road" Asian trade infrastructure, coordinated development of the Beijing-Tianjin-Hebei region, and development of the Yangtze River economic belt, are all designed to promote future growth. 

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