The Chinese economy is on life support

This economy is not growing at 5% in anybody’s mind except for the CCP’s and its menagerie of grovellers.

Property is stuffed.

Prices are still falling.

Cars are doing better on the cash-for-clunkers. This was true of consumption more broadly, but much of that is over now after the vouchers were pulled.

But exports are stuffed.

Oil and coal demand are stuffed. This is a little decarbonisation affected, but still…

There is a moderate amount of infrastructure demand, but the services and industry PMIs have flatlined.

This is an economy on life support.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.