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CAP: Tariffs start to drag on China’s growth

Our China Activity Proxy suggests that the economy’s growth slowed in April. But, so far, US tariffs seem to have had a bigger impact on consumer sentiment than industrial activity, with rerouting and renminbi depreciation helping to offset the fall in exports to the US. Still, broader external headwinds mean that China’s export growth is set to slow before too long, weighing on growth later this year.

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