China’s industry has contracted to the end of the year, for the first Time in more than two years. The official purchasing managers ‘ index for the sector fell in December to 49.4 points from 50.0 points in November, as current data show. Experts had expected a decline to 49.9 points. The trade conflict with America and a global economic slowdown weigh on the companies in the world’s second-largest economy. Experts fear that in the coming year, further turbulence before.
The American President Donald Trump and his Chinese counterpart Xi Jinping had lodged at their Meeting in early December, a break in the trade dispute, and not on new duties. Trump expects after a phone call with Xi, now with a rapid solution to the dispute. Good progress had been made””.
Many analysts doubt, however, that the dispute can be quickly settled. The conflict cost both sides billions of dollars. Many companies held back, also, with long-term investment. “There are a lot of short-term orders from abroad, but only a few long-term,” said nie Wen, economist at Hwabao Trust in Shanghai. “The medium – to long-term prospects for Export are not particularly optimistic.”