The markets of Asia that allowed the EU to drive an export-led economic recovery following the 2008 crisis are now faced with a recession. The US-China trade war is taking its toll on Hong Kong, China, Japan, India, Singapore, and South Korea, all of which are looking at deteriorating economic conditions.
China’s GDP slowed to six per cent in the second quarter – the lowest since 1990 – despite a double-digit currency devaluation over the last year (12 per cent), a deficit-driven investment programme, and accelerating credit supply.
China’s factory output is expected to contract for the fourth straight month in August. This has had a major impact on companies such as Apple, who pays a 15 per cent import tax for products made in China. While the American company is expanding to other emerging economies, namely India and Brazil, Apple relies on China for chips, glass, aluminium casings, cables, circuit boards – all of which adds up to just over 47 per cent of its supply chain.