China's factory output growth declines

 Industrial production rose by 7.2 percent over a year earlier. The Chinese officials decide to commit "new normal" of slower growth based on Chinese consumption. Their economic growth is 7.3%. The import decreased due to lack of domestic demand.
The officials say that they can solve this problem. but they cut interest rate unexpectedly in  November 22. As a result, economic growth may fall to 7.1 or even 7 because of that. Investment slows in 11 months as rate of 15.9.
"Officials seem willing to allow investment to cool further, as long as employment and consumer spending remain strong,"- an analyst said.
Analysts told the president that it will face downward pressure and increase difficulty for the business. They want the government to reduce excess productivity and wrestle with heavy debt made by state companies and local government.
 As an economist's perspective, I don't think decrease interest rate is a great idea, because of inflation rate that goes with it. Of course it boosts investment demand, but also increase debt too, that results in crowding out. With the situation of decreasing in domestic consumption, this will result in more excess production. The problem hasn't been solved. Instead, they should make Chinese product more appeal to other countries, so that export will increase more.
Source:
http://finance.yahoo.com/news/chinas-factory-output-growth-declines-092450160.html