Economy
Commercial dispute: mood in China’s industry is getting worse
China’s processing business looks much more pessimistic into the future because of the US tariffs. The mood may also be cloudy: Beijing tries to show strength with a propaganda video.
Under the continuing pressure of the trade conflict with the USA, the mood in China’s processing has noticeably deteriorated. As the statistics office in Beijing announced, the shopping manager index (PMI) was 49 points in April and thus 1.5 points lower than in the previous month. Experts had expected around 50 points in advance.
The PMI is an important early indicator for analysts and decision -makers. With a value of more than 50 points, the statisticians assume an outstanding activity in the factories. If the value is below, this indicates in a poorer mood among the purchasing managers of the companies. Large state companies are asked for the state PMI.
Further survey with falling values
At the same time, the Chinese economic medium “Caixin” published its PMI, which also depicts the mood of export -oriented and smaller private companies. With 50.4 points, this was higher, but he clearly lost compared to March (51.2 points). One reason is the decline in new orders under the tense trade situation, it said.
Since the escalation in the trade conflict with the new US government, the first effects of the business prospects of the companies have become clear at the beginning of April. President Donald Trump has increased the tariffs to Chinese goods several times, so that up to 145 percent of the imports are now due.
China denies conversations with the US side
China relegated to US imports with additional tariffs of 125 percent. In addition, Beijing restricted the export of important minerals and magnets and targeted the US aircraft manufacturer Boeing by no longer taking over Chinese airlines. For certain goods such as semiconductors, in which the People’s Republic is dependent on US manufacturers, China reported, however, report individual exceptions to the import duties.
Relaxation in the dispute of the two world’s largest economies does not seem in sight. Trump claimed that talks with the Chinese side were on. However, this was denied in China. The People’s Republic recently confirmed that despite the weak demand in Germany and the effects of a real estate crisis, wanting to hold on to its growth target of around five percent for this year and agreed to support companies affected by US tariffs.
Beijing drives up propaganda
On Tuesday, the Foreign Office spread a propaganda video under the title “Never kneel down”. In it, dark images from the USA are compared with modern Chinese factories in order to promote China as a stable partner. “Bending a tyrant is like drinking poison to breastfeed the thirst,” says the video. In Beijing, there is concern that Washington could make other countries to introduce trading -political forced measures against China.
dpa
Source: Stern
