Chinese government statistics showed on Tuesday that China's industrial enterprises surged 2.6% in July, reversing a 3.1% decline in June.
But the Chinese economy still faces "relatively great downward pressure," Zhu Hong, senior statistics officer at the National Bureau of Statistics, said in a statement.
The turnaround in growth was mostly due to infrastructure spending, including rail projects, Iris Pang, an ING Group economist, wrote in a Tuesday report.
She said there are still some risks that manufacturers face ̵
US President Donald Trump on Monday told reporters in France that "China called last night to forward a desire to return to negotiations. Asked about Trump's remarks later, the spokesman told the t Chinese Foreign Ministry Geng Shuang that he had not "heard about phone calls over the weekend that the United States mentioned."
He added that China hopes that the United States will not "let emotions sway their emotions" in relation to trade talks.
Pan noted the "lack of confirmation from China" in his research note, adding that "few can expect a straight path to an agreement late, regardless of the type of conciliatory remarks."  China's central bank also set the daily the yuan reference rate to $ 7,081 for a US dollar – another 11-year low. But the currency traded stronger than it did Monday in both onshore and offshore trading.
Bank of America analysts Merrill Lynch predict that the exchange rate will reach 7.50 yuan to a US dollar by the last quarter of the year. They expect the currency to gradually weaken, but it may fall sharply "when tariff increases are confirmed or escalated."