China's manufacturing hits 2-year low

China heads into the new year with its factories back in contractionary territory as the threat of a prolonged trade war dampens sentiment and stimulus struggles to gain traction. The manufacturing purchasing managers index dropped to 49.4 in December, the weakest since early 2016 and below the 50 level that denotes contraction. 

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Also, measure of activity outside China's factory gates fell to the lowest level in 15 months in November, as renewed weakness in construction activity outweighed strength in the service sector.

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2 minutes ago, 李伟王芳 said:

China heads into the new year with its factories back in contractionary territory as the threat of a prolonged trade war dampens sentiment and stimulus struggles to gain traction. The manufacturing purchasing managers index dropped to 49.4 in December, the weakest since early 2016 and below the 50 level that denotes contraction. 

Yes China's economy is slowing down yet it is slowing down from a very high growth number. So yes, it has slowed from 6.7% growth the last quarter down to 6.5% growth this quarter. China said its economy grew 6.5 percent year-over-year in the third quarter of 2018. That missed expectations for a 6.6 percent growth

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So this appears to be evidence that Trump's tariffs on Chinese exports are having an effect -- a negative effect on the Chinese. Although China's reported unemployment rate remains quite low at 3.8 percent, withdrawal of foreign capital and closing of Chinese factories in response to the tariffs will ultimately result in higher unemployment.

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3 minutes ago, Meanwhile said:

So this appears to be evidence that Trump's tariffs on Chinese exports are having an effect -- a negative effect on the Chinese. Although China's reported unemployment rate remains quite low at 3.8 percent, withdrawal of foreign capital and closing of Chinese factories in response to the tariffs will ultimately result in higher unemployment.

Trump had better hurry in making that deal with China. There may not be something you can make a deal with soon.

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9 minutes ago, Meanwhile said:

So this appears to be evidence that Trump's tariffs on Chinese exports are having an effect -- a negative effect on the Chinese. Although China's reported unemployment rate remains quite low at 3.8 percent, withdrawal of foreign capital and closing of Chinese factories in response to the tariffs will ultimately result in higher unemployment.

China can easily boycott Western products Xi can simply decree it....not so easy for the West to boycott Chinese stuff.

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4 minutes ago, Sefko Trafikant said:

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This tells us just one thing. No progress is being made in these talks.

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36 minutes ago, 李伟王芳 said:

China can easily boycott Western products Xi can simply decree it....not so easy for the West to boycott Chinese stuff.

Yes, Xi can.  Even with China being America’s 3rd largest export market the imbalance is huge.  We are enriching China through consumption of their goods, many of which they dump on us.  Whether Trumps tariffs are good or bad, or who blinks first Xi or Trump, the way forward for America is to diversify, invest in and buy more from other emerging markets instead of making China the trade Giant it is.  China isn’t the only nation with a huge cheap labor force.  

I’d much rather buy products from Mexico, Central and South America than those currently produced in China.  It might well increase prosperity in those nations and decrease the number of folks who for want, enter the US illegally.

From the office of The United States Trade Representative website:

“U.S. goods and services trade with China totaled an estimated $710.4 billion in 2017. Exports were $187.5 billion; imports were $522.9 billion. The U.S. goods and services trade deficit with China was $335.4 billion in 2017.”

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7 hours ago, 李伟王芳 said:

China heads into the new year with its factories back in contractionary territory as the threat of a prolonged trade war dampens sentiment and stimulus struggles to gain traction. The manufacturing purchasing managers index dropped to 49.4 in December, the weakest since early 2016 and below the 50 level that denotes contraction. 

What are China's primary goals in the trade negotiations? For America, I think it is some semblance of equity, great reduction of technology loss, protection of our businesses in China and agricultural exports with fair and reciprocal trade. 

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