august-22-01China’s large manufacturing sector is on the way back up. After months of sluggish economic performance, the world’s largest manufacturing economy is dealing with an incredible increase in orders as evidence points towards a recovery in Europe.

After years of steady economic growth, China’s massive manufacturing sector was forced to do as many Western economies have done over the past month: come to terms with the possibility of a slowdown in growth.

However, the East Asian manufacturing giant saw its manufacturing sector return to a period of growth this month after demand from importers grew. A survey by HSBC indicates that manufacturing has increased throughout the country during August.

HSBC’s Purchasing Managers’ Index (PMI) for China increased from 47.7 during the month of July to 50.1 in August. The PMI measures the overall health of the sector in a 0-100 rating. A rating of 50 indicates stability – one above 50 indicates growth.

While manufacturing growth was modest during August, its presence has relieved many involved in Chinese manufacturing. The country has focused on increasing its economic growth in the last quarter after slow mid-year performance.

China’s growth rate has slowed over the last two quarters, with many economists fearing it could continue to decrease as international sales decline. China’s recent manufacturing growth has been attributed to international buyers and consumer demand within China.

With an increasingly large middle class, China is beginning to become a top buyer for many of its own products. The large economy, which was once solely driven by exports, now has a relatively strong internal economy to maintain its growth.

In order to support sales of Chinese-made products, Beijing has eliminated value-added tax for businesses that generate less than £2,125 in monthly revenue. The government also plans to simplify the process of exporting products through the Chinese customs system.

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