China Manufacturing Stumbles As Travel Booms

After a strong start to the year, Chinese manufacturing contracted slightly in April, missing forecasts and undermining hopes of a continued post-COVID-19 boom.

Photo Insert: Contrary to Beijing’s hopes, tourists to Macao remain driven by the casino economy, not its theme parks or historical heritage.

It’s unclear how much of this is a result of limited domestic demand versus slackening global demand. Chinese retail and services data in the next few weeks may help clarify the answer, James Palmer wrote China Brief on Foreign Policy.

The contraction may be good news for air quality: Some observers feared the manufacturing recovery would threaten China’s remarkable success in pollution reduction.

Meanwhile, domestic tourism has surged during the May 1 holiday week, with numbers reportedly up 20 percent compared to the same period in 2019.

That’s especially good news for Macao, where the economy contracted by double digits last year under the weight of the zero-COVID-19 policy and a government anti-gambling campaign.

Contrary to Beijing’s hopes, tourists to Macao remain driven by the casino economy, not its theme parks or historical heritage, Palmer explained.

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