China’s Manufacturing Purchasing Manager Index (PMI) fell 0.4 percentage points in October to 49.2—any number below 50 represents a contraction in manufacturing production—according to official figures from the National Bureau of Statistics. The data was worse than expected with market analysts expecting a figure of 49.7. This is the second consecutive month the index has indicated a contraction, and is the lowest the index has been since the onset of the pandemic.

Article by Edward Cheng from our premium news partners at The Epoch Times.

Perhaps more worryingly, the data shows signs of stagflation—slow economic growth coupled with accelerating inflation. Driven by increases in commodity prices, the sub-index for output prices rose to 61.1, its highest level since 2016. But at the same time, a lack of demand is driving the contraction in production. The combination of high inflation and weak consumer demand could create a vicious negative feedback loop.

“About one-third of the surveyed companies listed insufficient demand as their biggest difficulty, indicating inadequate demand had restricted their production,” said Zhang Liqun, an analyst at the China Logistics Information Center, told Reuters.

MyPillow Supply Chain

But this is only the most recent data point in a series of negative economic news coming out of China. The world’s second-largest economy is unambiguously stuttering, leaving the authorities stuck in a bind as they attempt to navigate long-term goals with short-term needs.

Broader Economic Decline

The manufacturing numbers only serve to reinforce the disappointing gross domestic product numbers published last month. The National Bureau of Statistics reported that the country’s economy grew by only 4.9 percent in the third quarter, slowing from 7.9 percent in the second quarter.

Power outages have been a core headwind to Chinese economic activity. The energy crunch has been driven by a variety of factors that have colluded to cripple the country’s power sector.

Demand for energy has been unusually high, driven by unseasonably cold temperatures and high demand for Chinese goods from other countries as they have exited the pandemic.

But as energy demand has increased, supply had been restrained by the authorities. China removed a valuable source of imported coal when it cut coal purchases from Australia at the end of 2020, a move critics say was aimed at punishing the country for calling for an investigation into the pandemic origins. Meanwhile, the Chinese Communist Party’s carbon-neutral targets have led to lower domestic coal production. Moreover, government regulation capping electricity prices has meant power plants have not responded to these forces. These forces have resulted in a self-inflicted surge in energy prices and energy rationing across the country, stunting economic activity.

To compound the issue, even with the slowing production the global shipping crisis has meant Chinese manufacturers have not been able to capitalize on high global demand for their products.

“It is clear that economic momentum is slowing quickly and supply chain pressures are compounding this weakness,” wrote Mitul Kotecha, chief emerging markets Asia and Europe strategist at TD Securities, in a Nov. 1 research note.

Though power shortages and supply chain issues are unlikely to be a long-running headwind on the economy, one cannot ignore how sensitive China’s economy has been to these developments.

Ongoing Property Market Decline

Perhaps most worryingly is the property market, which has continued to slide and shows little sign of abating.

Low consumer demand, high leverage, and regulatory hurdles have seen a string of Chinese property developers, most notably Evergrande, run into liquidity and debt troubles. And these troubles likely run deeper than just a few firms. Bloomberg reports that two-thirds of China’s top developers have breached at least one of the “three red lines,” a series of regulatory interventions designed to deleverage the industry.

Consumers have understandably become cautious in the face of all these debt troubles. According to property research firm China Real Estate Information Corp., new-home sales for the top 100 developers fell by 32 percent year-on-year in October. As new-home sales dry up, this will amplify any liquidity concerns faced by property developers.

With property accounting for around 25 percent of China’s economic activity and a substantial portion of assets held by households, the slide in the property market will undoubtedly weigh heavily on growth.

Covid-zero Strategy

Adding to the economic headwinds, China has continued to enforce a stringent Covid-zero strategy. Outbreaks are still met with heavy-handed and disruptive lockdowns, with the retail sector being particularly sensitive to these measures. With the authorities showing no signs of changing their strategy, further disruptions to consumer spending and production will undoubtedly occur.

Image via Quartz.


Too Few Are Telling the Truth

Not long ago, conservative media was not beholden to anyone. Today, most sites are stuck on the Big Tech gravy train.

I’ll keep this short. The rise of Pandemic Panic Theater, massive voter fraud, and other “taboo” topics have neutered a majority of conservative news sites. You’ll notice they are very careful about what topics they tackle. Sure, they’ll attack Critical Race Theory, Antifa, and the Biden-Harris regime, but you won’t see them going after George Soros, Bill Gates, the World Economic Forum, or the Deep State, among others.

The reason is simple. They are beholden to Big Tech, and Big Tech doesn’t allow certain topics to be discussed or they’ll cut you off. Far too many conservative news outlets rely on Google, Facebook, and Twitter for the bulk of their traffic. They depend on big checks from Google ads to keep the sites running. I don’t necessarily hold it against them. We all do what we need to do to survive. I just wish more would do like we have, which is to cut out Big Tech altogether.

We don’t get Google checks. We don’t have Facebook or Twitter buttons on our stories. We don’t have a YouTube Channel (banned), and Instagram profile (never made one), or a TikTok (no thanks, CCO). We’re not perfect, but we’re doing everything we can to not owe anything to anyone… other than our readers. We owe YOU the truth. We owe YOU the facts that others won’t reveal about topics that others won’t tackle. And we owe America, this great land that allows us to take hold of these opportunities.

Like I said, I don’t hold other conservative sites under too much scrutiny over their choices. It’s easy for people to point fingers when we’re not the ones paying their bills or supporting their families. I just wish there were more who would break away. Today, only a handful of other major conservative news outlets have broken away from the Big Tech teat. Of course, we need help.

The best way you can help us grow and continue to bring proper news and opinions to the people is by donating. We appreciate everything, whether a dollar or $10,000. Anything brings us closer to a point of stability when we can hire writers, editors, and support staff to make the America First message louder. Our Giving Fuel page makes it easy to donate one-time or monthly. Alternatively, you can donate through PayPal or Bitcoin as well. Bitcoin: 3A1ELVhGgrwrypwTJhPwnaTVGmuqyQrMB8

Our network is currently comprised of nine sites:

We are also building partnerships with great conservative sites like The Liberty Daily and The Epoch Times to advance the message as loudly as possible, and we’re always looking for others with which to partner.

Also, we could use contributions of content. If you write or want to start writing and you share our patriotic, conservative, America First ideology, contact us. The contact form on this and all pages on the site goes directly to me.

Some of our content is spread across multiple sites. Other pieces of content are unique. We write most of what we post but we also draw from those willing to allow us to share their quality articles, videos, and podcasts. We collect the best content from fellow conservative sites that give us permission to republish them. We’re not ego-driven; I’d much rather post a properly attributed story written by experts like Dr. Joseph Mercola or Natural News than rewrite it like so many outlets like to do. We’re not here to take credit. We’re here to spread the truth.

While donations are the best way to help, you can also support us by buying through our sponsors:

  • MyPillow: Use promo code “NOQ” to get up to 66% off AND you’ll be helping a patriotic, America First company.
  • Freedom Phone: Use promo code “MAGA” and get $50 off AND you’ll be helping a patriotic, America First company.
  • OurGoldGuy: Tell them we sent you in your request to buy gold and it will help us… AND (wait for it) you’ll be helping a patriotic, America First company.

We know we could make a lot more money if we sold out like so many “conservative” publications out there. You won’t find Google ads on our site for a reason. Yes, they’re lucrative, but I don’t like getting paid by minions of Satan (I don’t like Google very much if you couldn’t tell).

Time is short. As the world spirals towards The Great Reset, the need for truthful journalism has never been greater. But in these times, we need as many conservative media voices as possible. Please help keep NOQ Report and the other sites in the network going. Our promise is this: We will never sell out America. If that means we’re going to struggle for a while or even indefinitely, so be it. Integrity first. Truth first. America first.

Thank you and God Bless,
JD Rucker

Bitcoin: 32SeW2Ajn86g4dATWtWreABhEkiqxsKUGn

2A Mug

All ORIGINAL content on this site is © 2021 NOQ Report. All REPUBLISHED content has received direct or implied permission for reproduction.

With that said, our content may be reproduced and distributed as long as it has a link to the original source and the author is credited prominently. We don’t mind you using our content as long as you help out by giving us credit with a prominent link. If you feel like giving us a tip for the content, we will not object!

JD Rucker – EIC

You Might Like
Learn more about RevenueStripe...