A truck transfers containers at Qingdao port in Qingdao, East China's Shandong province, Aug 8, 2016.(Photo/Xinhua)
For a massive economy like China's, which is in the midst of transition, it is easy to dwell on fragmentary data while failing to see the forest for the trees.
While the latest official indicators of traditional growth engines have underperformed, those measuring the new drivers of the Chinese economy suggest a silver lining.
Old engines losing steam
Growth in retail sales, industrial output and investment all decelerated from June levels, official data showed Friday, adding to concerns that the Chinese economy might be faltering.
Customs data published earlier showed July exports contracted by 4.4 percent from a year ago while imports plunged 12.5 percent.
Economists said the slowdown is expected if not desirable, given the side effects of the government's efforts to cut overcapacity, destock, deleverage, reduce corporate costs and shore up weak spots, five major tasks high on the agenda.
Li Daokui, an economics professor at Tsinghua University and a former adviser to China's central bank, expects a painful adjustment period in the near term as the country shoulders the costs of restructuring.
The dragging effect of the restructuring program can be seen in the efforts to slash overcapacity.
In the first six months of 2016, China reduced steel production capacity by 13 million tonnes and coal capacity by over 72 million tonnes, official data showed.
Short-term strains have resulted as China speeds up reform, said Zhao Xijun, vice head of the school of finance at Beijing-based Renmin University.
