In April, China’s industrial output grew by 3.9 per cent, retail sales fell by 7.5 per cent and fixed asset investment fell by 10.3 per cent, suggesting an uneven recovery. Data suggests demand weaknesses remain, while for industrial engine overseas shutdowns will hamper growth before long.
The success of China-Europe rail freight raises the question of its subsidy policy. In 2022, an adjustment seems more likely than an outright end to subsidies.