China manufacturing output drops to lowest level in 2 years

[huanghong]

Human life has a price tag. If you don't believe it, try to prolong an 80-year-old man for another 10 years at the cost of half of your national GDP.

So, it is up to you to choose, economy or life. At present, the government is still willing to bear economic losses for life, and I support this cho

 

[huanghong]

The war in Ukraine might upset China's ambitions to become a leader in chip production. Russia supplies over 40 per cent of world’s palladium and Ukraine produces 70 per cent of neon. palladium and neon are two resources that are key to the production of semiconductor chips

China's chip imports climb to nearly $380 billion in 2020 - Gizmochina

The recent US ban on some Chinese companies such as Huawei prompted the company to stockpile chips in 2020. A recent report by Bloomberg shows that China’s chip imports in 2020 will climb to nearly $380 billion USD, accounting for about 18% of total domestic imports. According to Bloomberg’s...

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ISMC to invest $3 billion in India’s first chip plant Unit to come up in Karnataka

The company is set to fully implement the project over the next 7 years with employment potential for 1,500 people. Additional Chief Secretary in the Department of IT, BT Dr EV Ramana Reddy on the part of Karnataka and ISMC director Ajay Jalan signed the MoU.

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Samsung Reaffirms Commitment to India with INR 1588 Crore Investment to Set Up New Compressor Plant for Refrigerators; Signs MoU with Government of Tamil Nadu

Mr MK Stalin, Chief Minister of Tamil Nadu graced the MoU signing ceremony in Chennai Compressors produced at the Sriperumbudur plant will be used in refrigerators manufactured in India and also for exports

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According to the latest statistics from the gas circle in January 2022, the proportion of Ukrainian neon gas in the global supply chain should be about 30%-35%, and the proportion of China’s global supply is 40-45%, mainly concentrated in Wuhan Iron and Steel, Handan Iron and Steel, Shougang and other large air separation companies.
Ukrainian neon gas supply accounted for 70% of the world, the data is before 2014, which is seriously outdated.
Check the customs data and you will find that China is exporting neon to South Korea and Japan, not importing neon。
As for palladium, I think China should be Russia's priority supply target.

 

[nang2]

So, it is up to you to choose, economy or life. At present, the government is still willing to bear economic losses for life, and I support this cho

Not really. It is often that when you choose your life, you hurt other people's economy, and vice versa. It would be a lot easier if that choice is simply a personal matter.

 

[huanghong]

Not really. It is often that when you choose your life, you hurt other people's economy, and vice versa. It would be a lot easier if that choice is simply a personal matter.

However, you eventually have to choose one.

 

[Beast]

Human life has a price tag. If you don't believe it, try to prolong an 80-year-old man for another 10 years at the cost of half of your national GDP.

His contribution to China rocket is immeasurable.

 

[Han Patriot]

Depends where that 2% is located.

And if zero covid policy continues that means any possible factory can be shut down for weeks just because few people in the city had covid.

If that continues then moving manufacturing outside China becomes more plausiable even if there is extra costs initially.

It's a cost and benefit analysis and I don't think the Chinese government is stupid. So far, its nearly 35 days and I heard next week it will reopen as the cases are near zero now. After this will be targeted lockdown like the old days, the reason why Shanghai had a surge was because of the same attitude we had with you now, complacency. We did not test and isolate strictly after 2 yaers of bliss. Btw, Shanghai is only one of China's city, its not as if the whole country is not working. 2% might have a gdp influence of 10%, and as calculated, China is losing 40bil a month by locking down Shanghai, its a reasonable cost to me.

The Trump trade war began in 2018, are you saying four years later the manufacturing STILL hasn't relocated to Vietnam?

Or India? One Chinese city locking down for 1 month is enough to be an apocalypse, then what happened to the rest of the world who were burning for the past 2 years while China was blissfully growing?

 

[Kai Liu]

China’s manufacturing activity slumped to its lowest level since February 2020, official data showed on Saturday, the latest sign of economic pain as Beijing doggedly pursues its zero-Covid response.

The official Purchasing Managers’ Index (PMI), a key gauge of manufacturing activity, clocked 47.4 in April – below the 50-point mark separating growth from contraction – as authorities said that a “decline in production and demand” has deepened.

The figures come as Beijing’s policy of swiftly stamping out infections with lockdowns and mass testing has been severely challenged by an Omicron-spurred pandemic resurgence.

Dozens of cities, including economic powerhouses like Shenzhen and Shanghai, have been either fully or partially sealed off in recent months.

The inflexible approach – even as most of the world learns to live with the virus – has inflicted mounting economic pain, with the curbs snarling supply chains and leaving goods piling up at the world’s busiest container port.

National Bureau of Statistics (NBS) senior statistician Zhao Qinghe acknowledged that some enterprises have had to reduce or stop production, while many firms have reported an increase in transportation difficulties

Dozens
of cities, including economic powerhouses like Shenzhen and Shanghai, have been either fully or partially sealed off in recent months.

The inflexible approach – even as most of the world learns to live with the virus – has inflicted mounting economic pain, with the curbs snarling supply chains and leaving goods piling up at the world’s busiest container port.

National Bureau of Statistics (NBS) senior statistician Zhao Qinghe acknowledged that some enterprises have had to reduce or stop production, while many firms have reported an increase in transportation difficulties.

"
The production and operation of… enterprises have been greatly affected,” Zhao said, according to an NBS statement that also noted the price indexes for raw materials remain “relatively high”.

The official non-manufacturing PMI plummetted to its lowest level since early 2020 as well, NBS figures showed, as the country braces for a muted Labour Day holiday.

‘Situation very concerning’​

On Saturday, Chinese media group Caixin released its own manufacturing purchasing managers’ index, showing a second straight month of deterioration, with the figure dropping from 48.1 to 46.0.

The Caixin survey, which covers small and medium-sized enterprises, is seen by some as a more accurate reflection of China’s economic situation than the official government figures, which more closely track the condition of large state groups.

“COVID control measures have done a number on logistics,” said Caixin Insight Group senior economist Wang Zhe in a statement.

Caixin also noted that firms expressed concerns over how long COVID restrictions would remain in place.

Speaking to Al Jazeera from Shaghai, Dan Wang, chief economist at Hang Seng Bank, said the situation was very concerning.

“I’m very worried where this is going because the current lockdown in Shanghai has been looking like it is going to end after this May holiday which means most people can probably walk around their neighbourhoods but for most factories around the East coast they are not in a very good condition,” Wang said.

“Taking notice of what is happening in Shanghai, many other cities are taking precautionary measures – even with one COVID case a whole city can be locked down. We might be looking at a situation where 30 cities might be locked down simultaneously. That is hugely disruptive to the supply chain,” she added.

On Thursday, tech giant Apple warned that China’s COVID lockdowns were among the factors that would dent its June quarter results by $4-8bn.

China manufacturing output drops to lowest level in 2 years

The figures come as Beijing doggedly pursues a zero-Covid response leading to lockdown measures in several cities.

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How low? Lower than india?

 

[nang2]

However, you eventually have to choose one.

You don't have to. They are not completely mutually exclusive. You need a proper compromise.