July economic data were bad across almost every category, and August is likely to be another very bad month.
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Chen Long discusses the recent July Politburo meeting, expectations for China’s economic performance in the second half of the year, and Beijing’s renewed focus on courting private business.
People seem to be cutting back on excessive saving, with consumption of services showing strong development.
US politicians have brought up several proposals on the matter, but none are likely to materialize in the near future.
The Politburo acknowledged at its Monday meeting that the economy is facing difficulties and pledged to offer more support.
Whether and how most companies will be affected is still unclear, but some foreign investors may be spooked by the uncertainty in the meantime.
Exports and real estate continue to be a drag on the economy, but household spending is recovering well.
Blocked from selling advanced chips and facing stiffer competition on legacy chips, companies may lobby Washington to loosen controls.
The RMB’s share in global forex reserves has declined despite higher allocations by central banks in Russia and Brazil.
Chen Long discusses China’s slowing economic growth, policy options for stimulus, outlook for the rest of 2023 and his findings from recent client trips.