New Delhi: Before the beginning of the nine-year period, China’s factory activity is decreasing in the month of December. China’s official data released on Tuesday showed manufacturing activity has slowed despite government efforts to boost the industry, as risks to foreign and domestic trade rise.
The international situation, which has been tense since 2020, has become very tense in 2024, which is likely to become even more tense in 2025, creating trade risks. On the other hand, due to many global reasons the internal purchasing power in the country has also collapsed, hence internal consumption has also reduced. As a result, the Purchasing Managers’ Index which was 50.3 in November has declined to 50.1 in December.
According to numerologists, Purchasing Managers’ Index being above 50 or up to 50 is a good sign. But this number has gone above 50. One reason for this is the heavy import of Chinese goods into America. Because after Trump takes power, the tariff on Chinese goods is going to increase significantly. So the goods coming from China will be expensive. Therefore, before January 20, American businessmen are buying more and more goods. So if the index is above 50, it seems certain that it is about to break out.
Gabriel Nag of Capital Economics says production has slowed. Which reflects the slow pace of factory activity. On the other hand, there is also pressure to reduce the prices of goods. However, relatively new orders have also been recorded over the past eight months. Most of which came from America. The reason is that American businessmen and people are eager to make as much purchases as possible before Trump takes power. But Trump’s increase in tariffs will make Chinese goods more expensive. In fact, despite many threats to China, most of China’s exports go to America.
After Trump comes to power, there is every possibility that the increase in tariffs will cause a shock to China in the trade sector. Don’t be surprised if the Manager Value Index drops below 50.
