The world’s second-largest economy is slowing as a result of slowing domestic demand and rising international trade.
It has already been the subject of two US sanctions in a year.
Now it has been told it must reduce the number of people employed in manufacturing.
The Chinese central bank says the move will cut growth by about 0.5% over the next five years and “may require an increase in government expenditure”.
But economists at Capital Economics think the move is unlikely to make much difference to the overall economic outlook, as the country’s output will not fall as fast as hoped.
“The main thing the Chinese government is trying to do is to try to convince the rest of the world that it’s doing a pretty good job,” said Professor Matthew Cholley, a senior research fellow at the Capital Economics Institute.
“They want to make sure they have the right message that China’s economy is strong, so that they can convince the US that China is not in a recession and the UK that China isn’t in a slump.”
If they don’t convince enough of the rest, they won’t be able to persuade the Chinese leadership to make any serious adjustments.
“The latest figures from China’s central bank suggest the country is now just over three years away from its second-quarter economic expansion of around 7.3% to 9.5%.
That is below the 7% target set by the IMF, which forecasts growth to average around 7%.
But that is a long way off the 7.9% rate of expansion expected in 2019.
The country’s government has been trying to push the economy into the 6%-7% range, which would give it the highest economic growth rate since the 1980s, when China’s growth rate was around 5%.
The US has also imposed sanctions on China in response to the slowdown in China.
In a statement, the US Treasury Department said the move “may result in additional adverse financial impacts on the Chinese economy”.
The US also imposed a visa ban on Chinese citizens, and imposed asset freezes and travel restrictions.
China is a member of the Organisation for Economic Cooperation and Development (OECD), a trade group that includes the US.
The World Bank is a partner in the OECD and has helped China with its economic reforms.
China’s economy has been growing at an average of about 6.2% annually over the past two decades.
The official government data showed the country grew at an annualised rate of 7.2%.