Demand for Chinese goods has been hurt by
weakening domestic and global economic
growth as well as U.S. tariff hikes in a fight over
trade and technology.
Negotiators are due to meet next week in
Washington but there has been no sign of
progress toward ending the dispute, which
threatens to tip global economic growth
into a recession.
“We don’t expect a meaningful breakthrough,”
said Citigroup economists in a report. “Even if
there is a ceasefire, the damage is already partly
done because of elevated business uncertainties.”
Weak factory activity is adding to pressure on
Chinese leaders to shore up economic growth. But
they have resisted U.S. demands to roll back plans
for state-led development of technology industries
that Washington and other trading partners say
violate Beijing’s market-opening promises.
The Federation described September’s data as
a manufacturing rebound and said “business
confidence shows signs of stabilizing.” But
forecasters warn China’s economic activity is
likely to decline in the longer term.
A construction boom is winding down and
Chinese regulators who want to reduce reliance
on debt to propel growth look unlikely to ease
lending controls. Beijing has avoided following
the United States and Europe in cutting interest
rates to spur activity.
A separate index by the Federation of service
industries declined to 53.8 from August’s 53.7 as
construction activity cooled.
“This is unlikely to mark the start of a
turnaround,” said Capital Economics in a report.
“Not only is global demand set to weaken
further, but the long-overdue pull-back in
property construction is getting under way.”
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(Antfer)
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