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In contrast with boomtowns such as Wenzhou and Yiwu in Zhejiang, Nantong is a study in conservatism and restraint.

The purchasing managers' index (PMI), a key gauge of manufacturing activity, hit a nine-month low in May, sparking fears that ongoing monetary tightening measures may slow economic growth.

The Purchasing Managers Index (PMI) of China's manufacturing sector dropped to 52 percent in May, the China Federation of Logistics and Purchasing (CFLP) said Wednesday.

Electricity prices for industrial use will be raised on Wednesday in 15 regions to combat power shortages, amid concerns over increasing manufacturing costs and a slowdown in production.

The Three Gorges Dam, the world's largest hydropower project, might lose the battle against the worst drought to hit Central China in 50 years if no rains fall by mid-June.