Chinese growth is there, but the road is uphill. This is confirmed by the armed wing of the party on reforms, the National and development reform commission (NDRC), which announced the performance of the Chinese economy in the first half of the year at the mid-year press conference. The NDRC intervenes, after the release of the GDP figure for the second quarter which confirms the slowdown in growth: + 7.9% in the second quarter, Beijing returns to normal after the explosive + 18.3% of the first three months of 2021.
A game played locally
There are many obscure points, especially a few days after the first cut of the ratios to bank reserves in a year now.
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But, again, the NDRC doesn’t go down from macro to micro. The Chinese game is all played locally. The critical element is that of internal consumption, considered a crucial driver for the Chinese recovery and which, on the other hand, in some cases proves to be less strong than industrial growth and the trade balance.
Some provinces and strategic cities, in the lead Wuhan, the epicenter of Covid-19, do not react on the growth front, and prove to be misaligned with respect to the national criterion.
Among these, some that in 2021-2019 had proven to withstand the impact of Covid-19: Guiyang (Guizhou) had registered a + 12.3%, Yinchuan (Nigxia) -2.8%, Shijiazhuang (Hebei) -2, 8% and -2.3% Wuhan (Hubei).