- Posted on December 16, 2024
- News
- By FC Team
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By Kevin Yao, Joe Cash and Ethan WangBEIJING (Reuters) - China's industrial output growth quickened slightly in November, while retail sales disappointed, keeping alive calls for Beijing to ramp up consumer-focused stimulus as policymakers brace for more U.S. trade tariffs under a second Trump administration.The mixed data underline how challenging it will be for China's leaders to mount a durable economic recovery heading into 2025, when trade relations with China's biggest export market could worsen while domestic consumption also stays weak.U.S. President-elect Donald Trump's vow to impose tariffs exceeding 60% on Chinese goods could push Beijing to accelerate plans to rebalance its $19 trillion economy, analysts said. This comes after over two decades of deliberation on transitioning from the current growth model focused on fixed-asset investment and exports to a consumption-driven one.China's industrial output in November grew 5.4% from a year earlier, faster than the 5.3% pace seen in October, data from the National Bureau of Statistics (NBS) showed on Monday, beating expectations for a 5.3% increase in a Reuters poll.However, retail sales, a gauge of consumption, grew at its weakest pace in three months at 3.0% last month, much slower than a 4.8% rise seen in October. Analysts had predicted a 4.6% expansion."China's economic policies have been amazingly consistent in promoting manufacturers over consumers despite clear signs of lasting weakness," said Dan Wang, a Shanghai-based independent economist."So, one can expect production capacity to strengthen, potentially agitating the overcapacity issue and motivating Chinese companies to seek overseas markets."investing.com