Global News: China Hikes Aluminum Export Tariffs And Reports Weaker Manufacturing Data

What happens abroad impacts MSCI members in North America. Here is the latest economic, trade, and other policy news of note for the last week:

• Starting January 1, 2023, the government of China adjusted import and export tariffs on some goods in order to promote development and expand domestic demand. Export tariffs on aluminum and aluminum alloys were among those products that had their tariffs increased. According to one analysis, “[T]he 2023 tariff adjustments reflect the country’s intention to secure its industrial and supply chains. They also aim to reallocate resources to promote technology innovation, industrial upgrades, and green development, and help boost China’s participation in the restructuring of the global industrial chains and the global free trade network.” Read more here.
• China’s National Bureau of Statistics announced its purchasing managers’ index (PMI) fell to 47.0 in December from 48.0 in November due to continued shutdowns resulting from the ongoing COVID-19 pandemic. In fact, the decline was the largest since the early days of the pandemic in February 2020. Read more here.
• The S&P Global Eurozone Manufacturing PMI increased to 47.8 in December from 47.1 in November, but has now been below the 50.0 mark that indicates contraction in the sector for six months in a row. According to S&P’s report, weakness in client demand continued due to slower new order intakes and increases in pre- and post-production inventories. Employment growth did improve, however, and business confidence also was at a seven-month high.
• The S&P PMI for India rose to 57.8 in December from 55.7 in November, a reading that pointed to a robust improvement in the health of the sector and that was the best seen since October 2020. The S&P did note that international demand for Indian goods improved, but at a lesser extent than in November. Overall, new orders from abroad rose at the slowest pace in five months.
• Read the PMI reports mentioned above and several others here.