Even with the implicit stimulus of lower commodity prices for imports, the Chinese economy is still facing headwinds to the outlook as evidenced by the latest manufacturing data. As the Chinese Central Planners seek to meet growth targets of 7% annually, this situation highlights the difficulties being faced as the slowdown is not just regional, but global in nature. The hardships faced in the container shipping sector suggest that the Chinese export economy is stumbling. Sunday’s official Manufacturing PMI printed just below the expansionary threshold of 50 while the HSBC Flash PMI was marginally higher emphasizing the disconnect within the data. With investment falling and deflation in producer prices rampant, the move by the People’s Bank of China to ease monetary policy was inevitable to support higher levels of growth in the economy.