Since taking office in the spring, the new Chinese leadership knew it had to boost a slowing economy, while, at the same time, rebalancing it away from state-driven investment. Some of the measures included in the “mini-stimulus” Beijing announced on Wednesday strike this difficult balance.

The package, which temporarily scraps taxes for smaller companies and slashes red tape for exporters, is much smaller than the gargantuan monetary stimulus provided in 2008. This restraint looks right. Manufacturing surveys for July showed the lowest reading in almost a year – a sign the slowdown is continuing. But year-on-year growth in the three months to June was still a steady 7.5 per cent – in line with what both the leadership and analysts expected.

The other important aspect of this week’s expansion is that it bypasses government, putting cash straight into the pockets of entrepreneurs. This shows that China is learning from its mistakes. The 2008 stimulus was largely channelled through local governments, which used the money to finance many unproductive projects. Beijing has to ensure its provinces deal with their old debts, not saddle them with new ones.