The Chinese government confirmed what most of the world already knows. The economy of the world’s most populous nation slowed between October and November. PMI data indicated that the critical manufacturing sector was in a period of contraction.
According to Reuters,
China’s annual rate of export growth slowed in November versus October, vice commerce minister Chong Quan told reporters on Wednesday, confirming market expectations that deteriorating external conditions are dragging on the world’s No. 2 economy.
The cause of the slowing is widely believed to be the weak economic expansion in China’s major trade partners–Japan, the US, and EU. The EU in particular has been wounded by years of deficit increase, negative economic growth and high unemployment
The EU is the largest region in the world by GDP. If it does not recover, which it is not likely too soon, the consumer activity that would drive important from China will not recovery for a long time. That would leave China without an engine to drive its 9% growth economy
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