For decades, the world has depended on China as a massive factory floor and market. As the country’s economic growth crumbles, the pain is spreading globally, the Wall Street Journal reported. Lockdowns aimed at stamping out Covid-19 are throttling activity in the world’s second-largest economy. Overseas demand for China’s exports is fading as economies wrestle with surging prices and rising interest rates. The effects of China’s slowdown are showing up everywhere from German factories to Australian tourist spots. Exports are weakening in Asia as China’s neighbors watch their largest market sag. Companies including Apple Inc. and General Electric Co. warned investors about production and delivery problems stemming from China’s troubles, as well as dwindling sales. Car sales in China have collapsed, hitting auto makers including BMW maker Bayerische Motoren Werke AG, Volkswagen AG and Tesla Inc. Tesla sold just 1,512 cars made at its Shanghai plant in April, down 98% from the more than 65,000 it sold in March, according to data released Tuesday by the China Passenger Car Association. Toyota Motor Corp. on Tuesday apologized for repeatedly missing its production plans, in part because of lockdowns in China, saying it expects to churn out 700,000 vehicles in May rather than the 750,000 it previously expected. China’s deceleration represents a double whammy for the global economy. The country isn’t just a huge market for the rest of the world’s goods, components and raw materials, but it is the manufacturing dynamo at the center of global trade. Read more.
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