Episode Details

China’s factories hit a contraction in July as the PMI dipped below 50 for the first time in five months, signaling a slowdown driven by weak domestic demand, especially in construction, and disrupted production from typhoons. While tech exports like chips and electric cars remain a bright spot, overall economic growth slowed to its weakest pace in over three years. With annual growth targets of 4.5–5% looking increasingly out of reach, policymakers are pushing to revive domestic spending — but whether they can reverse the factory slump remains uncertain.

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