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China Center Newsletter - November 2018

With Beijing reporting that Q3 GDP has fallen to a near ten-year low of 6.5 percent, some companies have observed softening market conditions in China. At the request of a member executive, we conducted a brief, anonymous survey of China Center member companies to assess the consensus situation.

Most companies (60%) reported that demand is down slightly but not significantly. Only 7% reported dramatic deterioration, while nearly a third reported stable conditions. For some firms reporting difficulties, impacts of the slowdown were concentrated in specific areas (product, sector, or geographic region). For others, they were relatively dispersed.

Respondents attributed the slowdown to multiple factors:

  • 36% blame China’s general economic slowdown 
  • 27% blame the trade war with the US 
  • 23% blame China’s tight liquidity conditions 

Read on for our latest analysis of China’s macroeconomic conditions as well as other relevant recent work. We’d be delighted to walk you through any of this material. It’s part of membership.

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