CHINA-ECONOMY
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Figures of the purchasing managers’ index of the National Bureau of Statistics and the China of Logistics and Purchasing -- an industry group -- showed that China’s manufacturing activity fell to a two-year low in October as domestic demand weakened, adding to pressure on Beijing to shore up economic growth amid a tariff war with Washington. The figures fell to 50.2 from September’s 50.8 on a 100-point scale on which numbers above 50 show activity expanding. Export orders weakened but the biggest impact was from cooling domestic demand. Auto and real estate sales have slumped since Beijing tightened lending controls last year to rein in a debt boom. The AP report (October 31) added that Chinese exports to the United States have been unexpectedly resilient since U.S. President Donald Trump’s first tariff hikes took effect in July in a battle over Beijing’s technology policy. Some of that is due to exporters rushing to fill orders ahead of duty increases. But producers of higher-value-added goods such as factory and medical equipment express confidence they can keep their U.S. market share even with higher prices. The report gave no details on U.S. demand for Chinese goods, but exports to the United States have risen by at least 13 percent over a year earlier each month since Trump’s first tariff hikes.
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