As China's economic growth slowdown becomes more visible, an analysis suggests that the shock is spreading to neighboring Asian countries such as South Korea, Japan, and Taiwan.
On the 3rd (local time), major foreign media reported that "neighboring countries closely linked to China, the world's second-largest economy, are experiencing a decline in consumer demand and a slowdown in manufacturing."
In particular, they reported that "South Korea's manufacturing slump has lasted the longest in nearly half a century, and other major export countries in East Asia are also being hit by weakening demand."
According to major foreign media, South Korea, the fourth-largest economy in Asia, is considered a bellwether showing the direction of the regional technology supply chain, with reports stating that "exports in July fell most sharply in over three years due to a decrease in computer chip exports to China."
They also reported that "the South Korean Manufacturing Purchasing Managers' Index (PMI) released on the 1st showed factory activity in August declined for the 14th consecutive month, setting a record for the longest decline since the survey began."
Japan is also showing a slowdown for five consecutive months, and in Taiwan, signs of reduced factory output and declining overseas demand are emerging. Southeast Asia and Australia are also not free from these effects.
Analyst Chui said, "To borrow an old saying, when China sneezes, Asia catches a cold," adding, "The entire region will feel the consequences of Chinese policymakers' refusal to accept calls for economic stimulus to boost the stagnating growth."
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