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News from China
Caixin manufacturing PMI drops to 51
3rd February 2017

 CHINA'S manufacturing sector continued to slow in January 2017 because of a further improvement in the health of the sector.

 
The Caixin General Manufacturing Purchasing Managers' Index (PMI) edged down to 51.0 last month from December's 47-month record of 51.9, and was consistent with only a marginal rate of improvement.
 
A reading above 50 indicates expansion, while a reading below 50 represents contraction.
 
The rate of improvement slowed since December 2016 as output and new orders increased at weaker rates amid a further reduction in employment. In contrast, new export work rose at the fastest pace since September 2014, according to the survey conducted by financial information service provider Markit and sponsored by Caixin Media Co. Ltd.
 
At the same time, inflationary pressures remained sharp, with both input costs and output charges increasing at rates scarcely seen throughout the past five years. Nonetheless, companies remained optimistic towards future growth prospects, and expressed the highest degree of optimism towards the 12-month business outlook since July 2016.
Source: Shanghai Daily, February 3, 2017
Chinese automaker JAC to produce cars in Mexico
2nd February 2017

 MEXICAN authorities announced Wednesday that Chinese automaker JAC would soon begin producing cars in the central Mexican state of Hidalgo.

 
Hidalgo Governor Omar Fayad announced the 4.4-billion-peso (212-million-U.S.-dollar) deal between Mexico's Giant Motors Latinoamerica and Chinese state-owned automaker JAC Motors at a press conference in the capital.
 
Under the deal, Mexico will begin assembling Chinese cars in March at a plant in Ciudad Sahagun, about 60 km northeast of Mexico City and the first cars are expected to roll off assembly lines in the second half of this year.
 
Mexico's Minister of Economy Ildefonso Guajardo said that the deal came at a time when the country is trying to diversify its sources of foreign investment amid uncertainty over its future ties with the United States.
Source: Shanghai Daily, February 2, 2017
China's January PMI slightly down to 51.3
1st February 2017

 CHINA'S manufacturing sector expands for the sixth month in a row, adding evidence that the world's second largest economy is stabilizing amid uncertain global outlook.

 
The country's manufacturing purchasing managers' index (PMI) came in at 51.3 in January, 0.1 percentage points lower than that recorded in December, according to data released Wednesday by the National Bureau of Statistics (NBS).
 
A reading above 50 indicates expansion, while a reading below 50 reflects contraction.
 
NBS statistician Zhao Qinghe said January's reading remained at a high level since 2012 and pointed to steady expansion of the manufacturing sector.
 
The sub-index for production was 53.1, 0.2 percentage points lower than that recorded in December.
 
The sub-index for new orders was down 0.4 percentage points to 52.8.
 
Zhao attributed the deceleration of production and new orders to the Lunar New Year holiday which slashed work days.
 
In addition, advanced manufacturing expanded faster than others, as the sub-index for high-tech sector picked up by 1.9 percentage points to 55.7, remarkably higher than other sectors.
Source: Shanghai Daily, February 1, 2017
Volkswagen to recall 1,993 vehicles in China
31st January 2017

 VOLKSWAGEN China will recall 1,993 vehicles in Chinese mainland due to defective body control modules (BCM), according to the country's top quality watchdog.

 
The recall, set to begin on Feb. 20, affects 1,476 imported 2016 Magotan travel series manufactured between Feb. 9, 2016 and May 30, 2016,and 517 imported 2016 Magotan four-wheel drive series manufactured between Feb. 9, 2016 and June 2, 2016, according to the General Administration of Quality Supervision, Inspection and Quarantine.
 
The defective BCM of affected vehicles might cause the dysfunction of car lamps when driving, posing safety risks, said the statement.
 
Volkswagen China promised to check all the affected vehicles and replace the defective parts free of charge.
Source: Shanghai Daily, January 31, 2017

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