China’s Economic Slowdown and Slower Growth in Emerging Markets

「In Japan, EV-related business remained weak. Overseas, China saw firm performance in electronic components related to AI and automotive parts and electrical components for EVs, while in the United States, investment in batteries for EVs continued to be restrained and projects continued to be deferred amid uncertainty over environmental policies.」

「Overseas, sales declined as capital investment fell short of expectations amid a prolonged economic downturn in Europe and China and widespread efforts to assess the policy direction of the new U.S. administration.」

「Other Asia: In India, construction-related operations remained stable as demand for capital investment related to infrastructure continued to be firm. In Malaysia, air-conditioning equipment, switchboards and control panels performed well against a backdrop of recovery in semiconductor-related demand. In China, however, domestic demand remained sluggish and generally weak conditions continued across industries.」

「Other Asia: While some regions showed signs of economic recovery, there were divergent trends across countries and regions. In China, there were no signs of recovery, while difficult conditions continued mainly in ASEAN, which is highly dependent on exports to China.」

「Asia and other regions: Although demand for capital investment in infrastructure and construction remained firm in India and some parts of ASEAN, delays in investment plans increased in China and other neighbouring countries amid continued economic stagnation.」

「Asia and other regions: Although exports from countries across Asia and ASEAN continued to decline due to the impact of China's economic recession, capital investment related to infrastructure remained firm, particularly in Taiwan and India. Net sales were ¥18,681 million, up 7.9% year on year.」

「Asia and other regions: Although China's economic recession affected exports, sales were led by Taiwan and other markets where construction and power distribution board-related businesses remained relatively strong against the backdrop of robust domestic demand. Net sales were ¥9,108 million, up 23.1% year on year.」

「In China, sales declined due to disruption following the shift away from the zero-COVID policy and the relocation of factories by foreign manufacturers to other regions. Meanwhile, sales expanded as supply-chain restructuring accelerated, particularly in ASEAN, resulting in net sales across Asia and other regions of ¥35,130 million, up 15.3% from the previous fiscal year.」

「In China, a gradual recovery was seen in the third quarter following the shift away from the zero-COVID policy, but sales declined due to the impact of foreign manufacturers relocating factories to other regions. Meanwhile, sales expanded substantially as supply-chain restructuring accelerated, particularly in ASEAN, resulting in net sales of ¥27,099 million, up 17.7% year on year.」

「Asia and other regions: In China, recovery from localised lockdowns was evident, but the pace was gradual, and companies were also seen taking a wait-and-see approach to investment ahead of the Party Congress, resulting in lower sales. Meanwhile, sales expanded substantially in ASEAN, including examples of foreign-owned manufacturers, particularly in manufacturing, relocating production bases from China. Sales also increased in India, where investment in decarbonisation had begun to gain focus, including sales of fibre laser machines. As a result, net sales were ¥17,319 million, up 20.5% year on year.」

「In China, economic growth stagnated due to localized lockdowns, and our sales declined as our operations were affected by the suspension of sales activities and postponement of trade shows. Meanwhile, sales recovered in India, where exports were strong and demand for agricultural machinery and social infrastructure was increasing, and in ASEAN, against a backdrop of supply-chain restructuring, resulting in revenue of ¥7,401 million, up 10.8% year on year.」

「China, the largest market, recovered from the COVID-19 crisis ahead of other countries, and demand increased for EVs, new electric power and medical equipment. However, sales increased only slightly due to the impact of lockdowns related to the Omicron variant from the second half of the fiscal year.」

「Although China has recently shown signs of slowing, growth in capital investment has continued. Sales remained strong, mainly for external-demand applications including 5G investment-related products, EV-related products and medical equipment, as well as for renewable energy-related applications serving domestic demand.」

「In China, which entered a renewed economic expansion phase ahead of other countries, there were signs of stagnation recently, but high growth in high-tech manufacturing and other sectors continued. Sales also remained strong, particularly for 5G investment, EVs and renewable energy-related applications, and medical equipment such as respiratory devices.」

「China's economy began recovering ahead of other regions, with a marked acceleration in its growth rate. Capital investment in manufacturing remained firm, particularly in medical equipment addressing infectious diseases and electronic and telecommunications equipment centred on 5G. Meanwhile, other Asian and emerging-market economies generally remained in difficult conditions, with no signs of improvement in the impact of the pandemic.」

「China's economy began recovering ahead of other regions, with a marked acceleration in its growth rate. Capital investment in manufacturing remained firm, particularly in medical equipment addressing infectious diseases and electronic and telecommunications equipment centred on 5G. Meanwhile, other Asian and emerging-market economies generally remained in difficult conditions, with no signs of improvement in the impact of the pandemic.」

「In China, sales in the sheet-metal segment increased, partly due to higher demand for telecommunications equipment, while sales in the fine-welding segment declined and remained weak. Significant declines in sales in India and other countries affected by continued lockdowns also contributed to net sales of ¥17,642 million, down 26.0% year on year.」

「In China, sales in the sheet-metal segment increased, partly due to higher demand for telecommunications equipment, while sales in the fine-welding segment declined and remained weak. Significant declines in sales in India and other countries affected by continued lockdowns also contributed to net sales of ¥8,310 million, down 24.1% year on year.」

「In China, sales declined due to the economic slowdown, the impact of US-China trade friction and other factors. Demand also remained weak in neighbouring countries such as South Korea. In India, sales remained weak as sentiment deteriorated due to issues including non-performing loans at financial institutions.」

「In China, demand for capital investment slowed and sales declined due to the economic slowdown, US-China trade friction and other factors. This also affected neighbouring countries such as South Korea, where conditions remained weak. In India, capital investment slowed due to issues including financial institutions' non-performing loans, resulting in net sales of ¥23,842 million, down 17.8% year on year.」

「Asia and other regions: In China, demand for capital investment slowed due to trade issues with the US, resulting in lower sales. This also affected neighbouring countries such as Taiwan and South Korea, where conditions remained weak. In India, appetite for infrastructure investment, including railways, temporarily declined due to political factors, resulting in net sales of ¥10,955 million, down 21.0% year on year.」

「In China, economic growth slowed under the impact of trade issues and worsening corporate liquidity, and companies, particularly in manufacturing, became more cautious about new capital investment. The effects of China's economic slowdown were also evident in slower economic activity in neighbouring countries. Meanwhile, other emerging markets, including India, continued to achieve solid economic growth.」

「In Asia, China showed signs of an economic and capital investment slowdown against the backdrop of trade friction, while other emerging markets, including India, continued to achieve solid economic growth.」

「In Asia, China recorded economic growth above the government's target, while other emerging markets, including India, also continued to post solid economic growth.」

「Asia and other regions: In China, demand increased mainly in automotive-related and telecommunications infrastructure applications, while sales expanded in electrical and electronic equipment and general machinery in South Korea and Taiwan. Sales in India also remained strong, mainly in general machinery, and resource-rich countries such as Brazil moved toward recovery. As a result, net sales were ¥40,020 million, up 19.0% year on year.」

「Asia and other regions: In China, sales in the welding segment continued to perform well, partly due to increased demand from the automotive and telecommunications infrastructure sectors. India also performed well, and sales in the sheet-metal segment in resource-rich countries such as Oceania and South Africa recovered as resource prices improved. As a result, net sales were ¥25,836 million, up 15.9% year on year.」

「Resource-rich countries also moved toward recovery, while India remained firm, resulting in net sales of ¥12,008 million, up 7.5% year on year.」

「In Asia and other regions, China's economic slowdown showed signs of bottoming out as a result of various policy measures, while resource-rich countries remained weak.」

「During the third quarter of the consolidated cumulative period under review, the US economy remained firm, led by personal consumption, while China's economy showed signs of recovery, partly as a result of various policy measures such as monetary easing and tax cuts. Overall, the economy continued on a gradual recovery trend. However, capital investment in Europe remained flat, and the recovery in emerging-market economies slowed, with some areas showing delays in improvement.」

「Some indicators in the corporate sectors of the US and Europe showed weakness, while the gradual economic slowdown in emerging markets, including China, continued.」

「During the first quarter of the consolidated cumulative period under review, economic slowdown continued in emerging markets, led by China, while the US and Europe remained relatively firm, resulting in a gradual recovery overall.」

「During the consolidated fiscal year under review, the global economy saw a pronounced slowdown in China, while growth also slowed in other emerging markets.」