Factory activity in China is expected to show extended declines in December, according to a Reuters poll, as the end of the country’s “zero-COVID” policy and rising infections began to affect production lines. Some analysts anticipate labor shortages and increased supply chain disruptions. Fears of a global recession due to rising interest rates, inflation, and the war in Ukraine have weakened external demand, which is likely to also impact China’s export manufacturers. This means manufacturers in China now face a challenging winter, despite the government’s renewed focus on pursuing economic growth.
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