• Audio
  • Live tv
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms of Service
Sunday, March 26, 2023
Morning News
No Result
View All Result
  • Login
  • Home
  • News
    • Local
    • National
    • World
  • Markets
  • Economy
  • Crypto
  • Real Estate
  • Sports
  • Entertainment
  • Health
  • Tech
    • Automotive
    • Business
    • Computer Sciences
    • Consumer & Gadgets
    • Electronics & Semiconductors
    • Energy & Green Tech
    • Engineering
    • Hi Tech & Innovation
    • Machine learning & AI
    • Security
    • Hardware
    • Internet
    • Robotics
    • Software
    • Telecom
  • Lifestyle
    • Fashion
    • Travel
    • Canadian immigration
  • App
    • audio
    • live tv
  • Home
  • News
    • Local
    • National
    • World
  • Markets
  • Economy
  • Crypto
  • Real Estate
  • Sports
  • Entertainment
  • Health
  • Tech
    • Automotive
    • Business
    • Computer Sciences
    • Consumer & Gadgets
    • Electronics & Semiconductors
    • Energy & Green Tech
    • Engineering
    • Hi Tech & Innovation
    • Machine learning & AI
    • Security
    • Hardware
    • Internet
    • Robotics
    • Software
    • Telecom
  • Lifestyle
    • Fashion
    • Travel
    • Canadian immigration
  • App
    • audio
    • live tv
No Result
View All Result
Morning News
No Result
View All Result
Home Economy

Chinese economic data paint an upbeat picture. U.S. companies operating in China are not buying it.

by author
March 15, 2023
in Economy
Reading Time: 4 mins read
0 0
A A
0
0
SHARES
11
VIEWS
Share on FacebookShare on TwitterLinkedinReddit

China’s economy continues to outperform even the most bullish of analyst expectations, though U.S. businesses with operations in the Asian economic powerhouse remain as pessimistic as ever, according to new reports.

China’s manufacturing and services activity are soaring, as the country continues to heal from the stranglehold the government put on businesses in its rigid effort to tame COVID-19 outbreaks.

On Wednesday, a leading gauge of manufacturing hit an 11-year high. The official purchasing managers’ index, or PMI, climbed to 52.6 last month, the National Bureau of Statistics, known as NBS, said. 

That was the metric’s highest reading since April 2012, and well above the 50-point threshold that separates expansion from contraction. It easily beat the 50.5 estimate that emerged in a Wall Street Journal poll of economists.

“ ‘China is no longer regarded by American companies as the primary investment destination it once was.’ ”

— American Chamber of Commerce in China

“Key industries are continuing to [the] rise,” Zhao Qinghe, a senior expert with the statistics bureau, said in an editorial accompanying Wednesday’s data. Of 21 manufacturing areas surveyed, “all were booming,” Zhao said, citing particular robustness in food processing, textiles and automobiles.

See: Nio’s earnings are terrible. China’s good news can’t save the stock.

A separate, independent measurement bolstered signs of the rebound. 

The Caixin China General Manufacturing PMI, also released Wednesday, clawed its way into expansionary territory after six straight months of contraction. The gauge, separate from the government PMIs, focuses on smaller, private and tech-focused companies.

A senior economist at Caixin’s think tank, Wang Zhe, said that factory supply and demand expanded — the latter from both overseas and within China — and that employment began to recover, supply chains continued to normalize, and managers at factories displayed a clear trend of increased confidence.

“The economy has entered a post-epidemic recovery era,” he said.

From the archives (August 2022): China rolls out a further trillion yuan in economic stimulus after vowing it wouldn’t unleash big fiscal packages

Beijing-based economist Michael Pettis said that “February’s big jump, after six months of contraction, suggests that the expected revival of China’s economy this year may have started.”

Yet manufacturing wasn’t the only surprise among the day’s data. The gauge for services activity, known as the nonmanufacturing PMI and a rough measurement of consumption, leapt to a fiery 56.3 — also one of the highest readings in nearly a decade, and above economists’ expectations.

Yet whether it specifically marks an opening of the notoriously tight pocketbooks of Chinese customers remains unclear. Pettis told MarketWatch he expects a temporary revival of consumption, though “it’s still a little early to confirm it. I’d like to see another month of consumption data.”

“ ‘February’s big jump, after six months of contraction, suggests that the expected revival of China’s economy this year may have started.’ ”

— Michael Pettis, economist

Analysts at the consultancy China Beige Book agreed, saying, “We continue to believe that spending trends in the early second quarter will more reliably signal the strength of China’s 2023 consumer comeback.” 

Furthermore, the good news has yet to galvanize U.S. businesses operating in the world’s No. 2 economy. After years of Beijing’s crippling anti-COVID policies, and amid heightened U.S.-China political tensions, American companies are as wary as ever of their prospects in China.

“China is no longer regarded by American companies as the primary investment destination it once was,” said the American Chamber of Commerce in China, in its annual Business Climate Survey Report, released Wednesday.

For the first time in the report’s history, less than half of respondents ranked China as a top-three investment priority. Half said they felt less welcome compared with a year ago, with particular pessimism among U.S. firms in the consumer sector.

“While U.S.-China trade has continued to grow throughout the pandemic, bilateral relations have become increasingly complex for the American business community in China to navigate,” said the chamber’s chairman, Colm Rafferty.

“Last year was particularly challenging for our member companies, as they dealt with China’s economic slowdown, COVID control measures, and ongoing efforts to ensure compliance with various new U.S.- and China-related regulations.”

Others echoed the skepticism.

“Part of the problem is that we are still not in a position to say that things are back to normal following the lifting of zero-COVID restrictions,” said James Zimmerman, a partner in the Beijing office of the law firm Perkins Coie who was not involved with the chamber’s report but has previously served as the group’s chairman.

In addition to the bilateral political tensions, Zimmerman told MarketWatch his concerns include overregulation in the technology sector and anticipated government fiscal belt tightening.

Tanner Brown covers China for MarketWatch and Barron’s.

More China dispatches from Tanner Brown:

The AI chatbot phenomenon is now making waves in China, too

Chinese moviegoers — starved for entertainment and craving normalcy — are set to put the country’s film industry back on top

A bang or a whimper? Chinese consumers face first restriction-free Lunar New Year since start of pandemic.

Can the Chinese economy rebound? Is the 2022 population decline the start of a trend? Here are the China stories to watch in 2023.

Tags: article_normalchinatannerbrownxijinpingzerocovid
Previous Post

Rental prices up almost 20 per cent in Mississauga, city seventh most expensive in Canada

Next Post

‘Difficult news’: Sidney-Anacortes ferry not restarting until 2030

Related Posts

Economy

Silicon Valley Bank closure: Yellen says banking system ‘resilient’ as she meets with regulators

March 26, 2023
11
Economy

Central banks look to restore confidence in banking system: Experts

March 26, 2023
11
Next Post

'Difficult news': Sidney-Anacortes ferry not restarting until 2030

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POPULAR TODAY

Elizabeth Banks, Ray Liotta.
Entertainment

Elizabeth Banks Shares Her Favourite Memory Of The Late Ray Liotta: ‘One He Wouldn’t Even Know I Saw’

by author
March 25, 2023
0
13

Elizabeth Banks has a special memory of the late Ray Liotta.Banks directed Liotta in “Cocaine Bear” before he passed away...

quebec daycare bus crash

Judge orders psychiatric evaluation for driver in Quebec daycare bus crash

March 26, 2023
12

Over 18 percent of Maryland households are burdened by high energy bills: Report

March 26, 2023
12
Maeen Abdulmalik Saeed

UN seeks $4.3 billion to cover Yemen 2023 humanitarian needs

March 26, 2023
12
An Ottawa Police officer sits in their cruiser on Wellington Street below Parliament Hill in Ottawa, on Friday, Jan. 27, 2023. THE CANADIAN PRESS/Justin Tang

Ottawa councillor denounces police wearing ‘thin blue line’ symbol on hockey jerseys

March 26, 2023
12

POPULAR NEWS

Why Ray Dalio says SVB collapse is a ‘canary in the coal mine’

March 21, 2023
20

Biden backs tax hike on investment income to bolster Medicare, as he rolls out his budget proposal

March 20, 2023
19

Hackers scored data center logins for big corporations more than a year ago. Now they’re selling that information

March 21, 2023
16
A woman holds out her hands to a physician.

Osteoarthritis: Experimental Drug May Help Reduce Inflammation and Symtpoms, Early Study Finds

March 23, 2023
16

A new way to trap radioactive waste in minerals for long-term storage

March 21, 2023
15

EDITOR'S PICK

Engineering

New way to predict the damage and aging of bridges

by author
March 25, 2023
0
12

A process of setting the carbonation depth-related data collected in regions A and B as basic data and generating a...

Read more

Ottawa ends shipments of rapid COVID-19 tests as millions set to expire

Canada Soccer sponsor offers financial support to resolve dispute with women’s team

Michigan State struggles with uncertain return to classes

‘Reality gap’ identified in gender equality survey on what Canadians think vs. experience

Morning News

Welcome to our Ads

Create ads focused on the objectives most important to your business Please contact us info@morns.ca

  • Home
  • Audio
  • Live tv
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms of Service

© 2022 Morning News - morns.ca by morns.ca.

No Result
View All Result
  • Home
  • News
    • Local
    • National
    • World
  • Markets
  • Economy
  • Crypto
  • Real Estate
  • Sports
  • Entertainment
  • Health
  • Tech
    • Automotive
    • Business
    • Computer Sciences
    • Consumer & Gadgets
    • Electronics & Semiconductors
    • Energy & Green Tech
    • Engineering
    • Hi Tech & Innovation
    • Machine learning & AI
    • Security
    • Hardware
    • Internet
    • Robotics
    • Software
    • Telecom
  • Lifestyle
    • Fashion
    • Travel
    • Canadian immigration
  • App
    • audio
    • live tv
  • Login

© 2022 Morning News - morns.ca by morns.ca.

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Go to mobile version