China’s factory activity is unlikely to be significantly affected by the Middle
East war, according to Capital Economics’ Zichun Huang. March PMI data suggest
that the recovery in economic momentum since late last year has not yet been
derailed by developments in the region. While the impact of the conflict is
expected to build in coming months, China is seen as less vulnerable than many
other economies and likely to face only a modest hit unless the situation
escalates further, she said.
