Bloomberg analysts said that China's weak economic recovery and Beijing's unwillingness to apply major incentives are reflected around the world. In particular, this entails a decline in commodity prices and leads to sales on stock exchanges.
Macroeconomic data from China signal an increase in fears that the country's recovery has stalled after the lifting of anti-bullying restrictions. It is expected that China's GDP growth this year will be closer to the government's target level of about 5%, contrary to expectations of its significant excess. The consumer services sector is growing the most, while industrial activity is lagging behind.
China's real estate sector is also in crisis, where sales have resumed along with the constant financial problems of developers. To date, local authorities have a sufficient amount of debt, so infrastructure spending is growing at a limited pace.
Due to low activity in construction, the raw materials markets are also under pressure: copper is trading below $8000 per ton, while iron ore has exceeded $100 per ton. As you know, China buys crude oil and copper the most in the world, and its steel industry accounts for more than half of the global demand for iron ore.
At the same time, the price of coal, with which China supports its industrial base, has fallen by 18% since the beginning of the year. Analysts note that domestic consumption has not yet paid off, and the export of industrial goods from China is experiencing difficulties.