China’s hi-tech manufacturing reaches ‘tipping point’ amid US curbs as output growth slows to record low
- Industrial output from China’s hi-tech manufacturing sector grew by just 0.7 per cent in July, year on year, the lowest pace since the data started in September 2018
- Beijing is eager to become more self-reliant amid Western containment efforts, but the abrupt fall in China hi-tech industries is cause for high vigilance, warned analysts
Output from China’s hi-tech manufacturing sector dropped in July, as analysts warned a weak position in the tech war with the United States could drag on the overall economic recovery.
Beijing is eager to become more self-reliant amid Western containment efforts, but 0.7 per cent growth in July, year on year, marked the lowest pace since the monthly data started in September 2018.
Despite slowly increasing, the year-to-date growth was still lower than the rise of 7.4 per cent at the end of 2022 and 18.2 per cent in 2021.
The abrupt cliff-fall decline in hi-tech industries this year is cause for high vigilance
Outside the temporary fall that resulted from the coronavirus-related disruptions in early 2020, the increase in the first seven months of the year also marked the lowest pace in nearly two decades since China first reported the data in 2003.