China’s recovery slows amid government crackdown to tighten control of economy

The upturn in economic activity in China in August continued to deepen its slowdown, according to the latest data from Industrial production and retail development published on Wednesday by the country’s National Statistics Office.

In the case of industrial production, in August there was a 5.3% growth over one year, which represents a decrease of 1.1 percentage points from the increase observed in July. In this way, The production of Chinese factories slowed for six months.

By industrial sectors, mining increased by 2.5% (1.9 points more than in July), manufacturing industry increased by 5.5% (seven tenths less) and the production of electricity, heating, gas and water increased by 6.3% (6.9 points lower). High-tech manufacturing sector rebounded 18.3% (2.7 points more).

During the first eight months of the year, Chinese industrial production rose 13.1%.

For its part, the volume of retail trade in the Asian country in August reached an amount of 3,439 billion yuan (452,242 million euros), which represents growth of 2.5% in one year. This increase is 2.1 points lower than that recorded in July and this is the worst data reading in the past 12 months.

Over the first eight months of 2021, the total volume of retail business reached 28,122 trillion yuan (3,698 trillion euros), 18.1% more than last year.

Data is known at times when Chinese government launches offensive against a wide range of sectors, including technology companies and private education, with the aim of strengthen your grip on the world’s second-largest economy. President Xi Jinping, who is also in the middle of a campaign targeting the wealthy nationwide, calls for “common prosperity”.

In the last days the attention of government, investors and analysts is focused on the situation of real estate giant Evergrande. The mammoth company has acknowledged that it may not be able to meet its obligations, exceeding $ 300,000 million, This generates fear among buyers, investors and entrepreneurs of bankruptcy that would have repercussions on the world’s second-largest economy.

Recovery could also be affected by new restrictions that the authorities dictated in several cities before the last rebound in COVID-19 infections.

(With information from Europa Press and AFP)

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