For the first half of the year, the China's economic growth rate holds steady at 7%, reaching the bottom line of the government’s target. However the Purchasing Managers Index (PMI) indicates that the China’s economic performance was below expectation and the manufacturing sector has been shrinking for the fifth month. Anbound’s scholars point out that the PMI reveals the obvious problem in China’s economy – the manufacturing sector has been weak. In determining whether the Chinese economy has recovered, one should look at the manufacturing sector.