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Pressure for prices to rise has been relatively low because supply exceeds demand in many industries. That has led to price-cutting wars among competitors, squeezing companies financially and forcing some into bankruptcies. Communist leaders have ordered companies in industries including steel, cement and glass to shut down some factories to reduce excess production capacity. Premier Li Keqiang said in June that there was little room to stimulate the economy with short-term measures such as higher government spending. Li said communist leaders would focus on reforms aimed at supporting entrepreneurs and encouraging domestic consumption to reduce China's reliance on exports and investment. The government has cut taxes on small businesses and stepped up spending on building railways. July imports soared 10.9 percent over a year earlier in a sign of stronger Chinese domestic demand. "A solid increase in commodity imports in July suggests that investment is picking up, possibly helped by an official pivot towards rail investment," said Alaistair Chan of Moody's Analytics in a report. Government efforts to cool surging housing costs with curbs on lending and sales have helped to slow a rise in prices but also have hurt purchases of furniture, appliances and other goods by home buyers. ___ National Bureau of Statistics (in Chinese):
http://www.stats.gov.cn/
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