China Manufacturing Slump Shows Why They Need a Deal With Trump

 China's manufacturing sector is facing serious difficulties, as demonstrated by a continuous decline in the manufacturing Purchasing Managers' Index (PMI). This situation highlights the importance of establishing a trade agreement with the United States led by Donald Trump.

• Declining Manufacturing: China's manufacturing PMI fell to 49.0 in October, marking the seventh consecutive month of contraction. This indicates significant challenges for an economy largely dependent on exports and factory output.

• Economic Weakness: There is a decline in new orders, cooling global demand, and reduced factory output. Despite government efforts to support the economy through stimulus and infrastructure projects, the manufacturing sector remains weak, indicating a structural decline in China’s economy.

• Political Implications: Historically, China has relied on low labor costs and export surpluses to fuel growth. However, global trade tensions, particularly initiated during Trump’s first term with tariffs, have pressured Chinese manufacturing. Analysts suspect that actual economic conditions in China are worse than reported.

• Shift in Leverage: The ongoing weakness in China's economy means that it requires a trade deal with the U. S. more than the U. S. needs China. Trump’s strategies focus on reducing American dependence on Chinese goods, which is seen as smart business rather than protective nationalism.

• Impact on Americans: The decline in Chinese manufacturing affects U. S. consumers by influencing the availability and cost of goods. A healthier trade relationship could promote American job growth and less reliance on foreign production.

• Call for Real Assets: In light of global economic instability, investing in tangible assets like energy, food, and precious metals becomes crucial. These assets maintain value when production in foreign countries falters.

China’s economic troubles reflect broader issues of reliance on central planning in a competitive environment. Trump’s approach to trade emphasizes the need for economic independence, advocating for a revival of America’s manufacturing base. This vision is not just nostalgic but essential for a stable economic future in the U. S., as it seeks to protect its workers and economy against global vulnerabilities. 

https://economiccollapse.report/china-manufacturing-slump-shows-why-they-need-a-deal-with-trump/