Buoyant Chinese demand has been a wonderful palliative for western industrial companies in recent years that helped to offset anaemic European and US sales.
However, comments from leading industrial companies last week suggest Chinese demand for a host of western-produced capital goods ranging from earthmoving equipment to automation technology is – at least temporarily – starting to slow.
China’s efforts to cool a real estate boom and engineer a soft landing come as its manufacturers hold back fixed-asset investments due to tighter credit, overcapacity and slower demand from the debt-encumbered eurozone.
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