Numbers associated with China’s economy are important to those of us who market products to their consumers. We have a vested interest in their health and happiness – which is the reason we spend so much time watching their economic activity.
Having established that, there are concerns about which we should be aware. Actions by both the US and the Chinese governments affect consumers. Things to watch for…
- US interest rates are on the way up. An increase will likely strengthen the dollar against the yuan, which will weaken growth in China.
- US trade restrictions, as promised by the current government, will have a disruptive effect on both sides of the Pacific i.e. new restrictions on solar panels
- Tightened regulations in China, financial and environmental, are likely to effect the construction sector, which is a major employer.
- Too much debt in the Chinese economy is another challenge that will require some years to unwind.
- Geo-political: Should the North Korea situation worsen in any of many different ways, the economies of both the US and China will be affected.
Source: Bloomberg