China's Economic Overview and Challenges slide image

China's Economic Overview and Challenges

Uneven economic development between upstream and downstream industries as well as between large and small firms Upstream industries performing much better than downstream ones Industrial Profits Year-on-year change in the whole year of 2021 212.7% Bigger companies performing better than smaller ones Manufacturing Purchasing Managers' Index 60 55 50 51.6 45 45 46.0 12.2% 40 40 8.3% 4.1% 1.9% 35 Coal producers Electrical General machinery & equipment Textile makers Car makers 30 equipment manufacturers 2020 2021 2022 Overall - large-size firms manufacturers medium-size firms Source: Bloomberg (data as of 30/1/2022) small-size firms Upstream industries Midstream Downstream industries industries Source: National Bureau of Statistics (data as of 27/1/2022) · Although the divergence has improved in recent months, the gap is still large, as soaring input prices are putting pressure on downstream industries. BEA東亞銀行 • While large and medium-sized manufacturers are seeing improvement, small and micro-sized firms are still struggling. 4
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