China has taken various steps in recent months, including cutting taxes for small firms, to help boost its economy. Analysts said the latest reading - which measures activity in smaller factories - showed the measures were starting to have an impact on growth.
After years of robust expansion, China has seen its growth rate slow in recent years, in part due to a slowdown in demand for its exports from key markets.
As a result, China has taken steps to try to sustain its high growth rate and also to boost domestic demand and rebalance its economy. In April, the government said it would cut taxes on small firms and speed up the construction of railway lines across the country.
Earlier this month, China's central bank said it would cut the reserve requirement ratio; the amount of cash banks needs to keep in reserve - for banks engaged in lending to agriculture-related businesses and small companies. China's central bank, the People's Bank of China, said it would also encourage banks to lend more to exporters to boost shipments.
The government also announced plans to build railways, roads and airports along the Yangtze River - which connects China's less developed inland provinces to Shanghai. Analysts said that Beijing was likely to continue to take steps to help boost its economic growth.
reporter
Park Sae-jin
swatchsjp@ajunews.com
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