Chinese factory activity declined in October, official knowledge showed on Monday, after industries were hit by strict COVID lockdowns.
The purchasing managers’ index (PMI), a key indicator of output in the world’s second-largest economy, stood at 49. 2, down from 50. 1 in September and below the 50-point mark separating expansion from contraction, according to the National Office’s knowledge. of Statistics (NBS).
Sporadic COVID-19 lockdowns in China have dampened demand and confidence.
Production PMI has been in contraction territory for six of the past eight months, as extensive COVID restrictions have paralyzed major commercial cities such as Shanghai, Shenzhen and Chengdu and a summer of scorching heat has affected production.
“In October, affected by the common occurrence of domestic outbreaks, China’s manager index declined,” Zhao Qinghe, senior statistician at NBS, said in a statement.
Zhao said “the foundations of China’s economic recovery and progress should be further consolidated,” noting weakening demand and emerging commodity prices.
While activity in large enterprises increased in October, paintings in small and medium-sized enterprises significantly, with Zhao stating that “the strain on the production and operation of small and medium-sized enterprises has increased. “
Meanwhile, the non-manufacturing PMI stood at 48. 7 points in October, down sharply from 50. 6 in September and “below a turning point,” Zhao said in the statement.
Zhao said COVID outbreaks in October hit the service industry hard, with the activity of transportation, accommodation and food corporations falling into a classic peak era that coincides with week-long holidays.
China’s leaders forecast annual GDP expansion of around 5. 5%, but according to many economists, the country will struggle to meet the target, despite the announcement of a better-than-expected 3. 9% expansion in the third quarter.
And officials have shown no sign that they intend to implement the country’s zero-COVID strategy, with President Xi Jinping last week selling Li Qiang, who oversaw a debilitating two-month lockdown in Shanghai, to the toughest post at the moment in the Communist Party.
Xi is hurting the Chinese economy with lockdowns even when they have been identified as a counterproductive measure that is no longer mandatory when the threat to the population can be controlled much more easily through vaccination and other much more logical measures.
There is no explanation as to why this is the case from a public adequacy perspective, but from a political perspective, unnecessary blockades are very useful as an excuse to exert strict control over the population and hinder any attempt at dissent.
Thus, they have become the CCP’s first priority, making the economy the second. The rights and well-being of citizens, probably not even in the most sensible ten.
Logically, the Chinese government cares more about its economy and its people than European leaders.
Since the pandemic is not the only thing happening in the world right now, this is not a valid conclusion. , which you yourself accepted as a fair point to criticize China’s strategies.
Foxconn is a Taiwanese company in China, no wonder it attacked immediately after the CCP conference.
If Xi’s project is to slow China’s economic progress at a snail’s pace, that’s not necessarily a bad thing for world peace, right?However, for world peace. . .