Chinese exports rose 32.3% in April compared with a month earlier, while imports rose 43.1%. Despite the fact that the economic activity is going great days, the lack of technological chips is expected to create significant problems in production and at the same time could lead to a rapid rise in prices for electronic devices and cars.
At the same time, governments efforts to reduce leverage and limit the power of large companies continue unabated. Thus, after the legal regulations for the technology sector, the stricter regulations for loans to manufacturers (real estate), the companies in the fintech sector took their turn as the huge liquidity that is channeled to this sector, leads to a rapid gigantism of companies.
All the above have triggered a new period of instability for the Chinese markets, which however was necessary as the previous rise was significant. In any case, it is important to know that the long-term trend remains strongly upward.
When the reforms are completed, we expect more action to strengthen private consumption in order to further stimulate growth. According to the latest data on inflation, the rise in prices is due more to rising commodity prices than to rising consumption.