According to De Jong, growth of 5.6% and 18%, respectively, sounds like a lot, but it isn’t when put into the crown perspective of China’s strict blocs in April last year. Because who is the production level Not compared to that of April last year, but with that of April 2021, it sees growth of only 2.5 percent. By Chinese standards, such growth in two years is disappointing.
The same goes for retail sales. In April 2023 18.4 percent, in April last year minus 12 percent, compared to 2022, which is equivalent to a growth of 5 percent in two years. “That also includes 2.5% inflation. So these are miserable and disappointing figures.
According to De Jong, it is desirable that China’s reopening proceeds more smoothly because the country is the engine of the world economy. The Netherlands, with its open economy, will receive an important boost, also because China and Germany have such close trade contacts and the Dutch economy is tied to the German one by rubber bands. “Germany exports to both China and the Netherlands, and we are an important export market for Germany after the United States and France.”
“These are meager and disappointing figures”
The German economy would greatly benefit from increased Chinese imports. China mainly imports machines from Germany and the Netherlands is once again an important supplier for German machine building.
Another implication for a sticky Chinese economy is domestic. According to De Jong, Chinese politicians have a psychological contract with their population. ‘Policy makers are in charge and people are politically oppressed, but in return they receive a continuous increase in prosperity. Those politicians have not been able to achieve this goal in 2022 and now it is disappointing again. So this is a problem.’