What’s new: Manufacturing activity is recovering in China’s Greater Bay Area, which encompasses the Pearl River Delta cities of Hong Kong, Macao and Guangzhou, according to new research from Standard Chartered.
The survey, which polled more than 220 manufacturers between mid-March and mid-May, found that larger manufacturers were closer to returning to pre-pandemic levels of business than smaller ones.
The survey also found the percentage of respondents wishing to move operations outside China had fallen, with the notable exception of companies engaged in the semiconductor sector.
Background: China has been one of the world’s first major economies to recover from the pandemic, having largely controlled Covid-19 outbreaks within its borders since last summer. Accordingly, it has posted strong economic growth, including a record 18.3% GDP expansion in this year’s first quarter.
But political factors have clouded the outlook for the nation’s semiconductor sector, as the U.S. tries to keep some of its most advanced technologies out of the hands of some of China’s most prominent high-tech companies.
Contact reporter Yang Ge (geyang@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
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