China news roundup / Nachrichten 2025-03-02/03

18 days ago (Edited)

China’s factory activity growth hits 3-month high in February, as millions return to work after holidays

"This private survey reading on Monday followed the official manufacturing PMI released on Saturday, which also showed that China's February factory activity expanded at its fastest pace since November."

--- Grmph. When will they ever learn (or admit) that there is no private journalism in China?

"Plagued by lackluster domestic consumption, output prices at factories have remained under pressure, particularly consumer and investment goods that experienced sharper price declines, according to the Monday survey"

--- & that has been going on for more than a year now, but somehow there is still growth?

China's central bank, regulators vow financial support for private companies

"China's central bank and financial regulators held a meeting with private enterprises and financial institutions, vowing to increase lending to private enterprises and expand their fundraising channels"

--- More pledges. Great!

"China will guide financial institutions to treat all types of enterprises equally"

Ebbing demand for China's favourite firewater adds to debt concerns

"In the Chinese village of Maotai, the local firewater named after the town is not only a key source of income, it's a barometer of the country's battered consumer market and the economic misfortunes of its home province"

--- Mostly for the luxury market, but yeah, Moutai pretty much shows where China's economy is going:

"Shanghai-listed Kweichow Moutai is majority-owned by Moutai Group, in turn wholly owned by Guizhou, China's second-most indebted province.
Its contribution to Guizhou's economic development is enormous, not only as a major employer but also as a vehicle for the province to raise revenue and pay down debt.
Long considered a bellwether of Chinese consumer demand, its retail performance has been squeezed in recent years by wider deflationary pressures.
"Before, people would fly from Beijing to buy bottles of Moutai for more than 3,000 yuan ($412) several times per year," said a shopkeeper at one of the many liquor stores lining the river in Maotai village.
"Now you can get a bottle for as little as 1,699 yuan, but the environment is so bad, no-one wants to buy.""

--- Signs of a healthy, growing economy?

""If you are served Moutai, it means you are important and successful," said George Liu, a private equity manager in Beijing. "If it's cheaper, what's the point of drinking it?""

--- Good question. That stuff is disgusting.

China likely to target US agriculture, state media reports, as Trump tariff deadline nears

"The US has long been vulnerable to China targeting its agricultural exports in times of trade tensions.
China remains the biggest market for US agriculture products despite a decline in imports since 2018 when Beijing placed tariffs of up to 25% on soya beans, beef, pork, wheat, corn and sorghum in retaliation for duties on Chinese goods imposed by Trump"

--- Yawn. China is highly reliant on food imports. Hence there is not much room for manoeuver.