A series of intractable problems continue to weigh heavily on the Chinese economy.

China's manufacturing activity declined for the second consecutive month in May 2023. This is the latest sign that the giant economy is losing momentum in its recovery.

The Chinese economy is showing signs of losing momentum in its recovery. (Photo: Tomoko Wakasugi)

China's National Bureau of Statistics (NBS) said the official Purchasing Managers' Index (PMI) for the manufacturing sector – a key measure of factory output – fell to 48.8 in May 2023, below the 50-point mark that separates growth from contraction.

This figure follows a decline of 49.2 in April 2023, reversing a three-month growth trend and falling short of the average estimate of 49.5 from economists surveyed by Bloomberg .

In addition, official data released on May 28th also showed that profits of industrial enterprises in China fell sharply in the first four months of 2023. Companies continue to struggle with pressure to increase profit margins amid weak demand due to the economy not recovering as strongly as expected.

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Asian LNG imports recovered to 21.83 million tonnes in June 2026.The liquefied natural gas (LNG) market in Asia is seeing a recovery in volume after a period of disruption in the Strait of Hormuz, with increased purchases from key markets such as Japan and China.

Iron ore prices fell to $103.95 per ton as demand weakened in China.On June 3, 2026, iron ore prices on major exchanges fell across the board due to shrinking profit margins in the steel industry and negative impacts from weather conditions in China.

According to data from China's National Bureau of Statistics, industrial profits fell 20.6% in the first four months of this year compared to the same period last year. In April alone, the decline was 18.2%, following a 19.2% drop in March.

According to Zhiwei Zhang, Chairman and chief economist at Pinpoint Asset Management, the decline in the PMI index indicates that the economic recovery is facing challenges.

Mr. Zhang also stated that the cooling real estate market and the burgeoning second wave of Covid-19 have weakened domestic demand.

The Chinese economy grew by 4.5% in the first quarter of 2023, as the country reopened after a period of strict health control measures to combat the epidemic.

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Iron ore prices remained stable at $101.65 per ton despite rising geopolitical tensions.In contrast to the volatility of crude oil and non-ferrous metals, iron ore prices remained around $105 per ton thanks to supplies from Australia and Brazil not passing through the Strait of Hormuz.

Is the depreciation of the yuan actually good news for the Chinese economy?

We hope that the people and all economic sectors understand the importance of energy conservation.Promoting electricity conservation, along with implementing electricity demand management programs during periods of intense heat, especially when the system is at risk of supply-demand imbalance, plays a crucial role. Mr. Tran Viet Nguyen, Deputy Head of the Electricity Trading and Business Department of Vietnam Electricity Group (EVN), shared his views on this issue.

However, a host of pressing issues are weighing on the world's second-largest economy, including a debt-ridden real estate sector, weak consumer confidence, and the risk of recession in other economies.

China is also struggling to cope with the Covid-19 outbreak, but there are few signs that tightening policies will be reintroduced.

Source: https://baoquocte.vn/loat-van-de-nan-giai-van-dang-de-nang-len-kinh-te-trung-quoc-229146.html