The agreement between the 10 countries of ASEAN (Association of Southeast Asian Nations), and the Tripod constituted by China, the second largest economy in the world (US $ 14.1 trillion / 15% of global GDP), Japan, the third largest economy in the world system (US $ 4.9 trillion), and South Korea, the sixth largest productive system on the planet (US $ 1.6 trillion), to which Australia and New Zealand must be added, has become the largest free trade area of the XXI century, above the European Union (EU) and the New NAFTA / USMCA (USA / Canada and Mexico).

After years of strong sales growth and "cake for all", the Chinese market has to regulate itself, either with the invisible hand or with that of the politicians. In this process, manufacturers who, without the support of protectionism, are not competitive will disappear.

It's the economy, stupid. With that popular phrase dating from 1992, the future that holds for some Chinese car manufacturers that have benefited from 30 years of protectionist policies, but who in a competitive market do not have much future, can be summed up in one line.

The presence of China in Africa and its incipient economic relations with the countries of the continent have generated in the Asian giant the need to protect its interests, for which the deployment of mercenaries has become a solution that also allows Beijing to maintain its policy low-profile and non-interference in the affairs of these countries.

China is already the second largest economy in the world with a GDP (in current dollars) of more than $ 14 trillion. The strong growth that the Asian giant has experienced in recent decades, together with the stagnation of the euro zone (13.4 trillion), has allowed a rapid sorpasso that has de facto occurred in 2019, according to JP Morgan estimates. The US continues to be the first global economy with a GDP of 21.3 trillion dollars, a distance that is still important, but which this year will be sharply reduced due to the explosive recovery of the Chinese economy from the Covid-19 crisis.

Although it is originally from China, the kiwi is not a fruit that in the West is usually associated with the Asian giant. But it is enough to walk to the top of one of the gentle mountains of Xiuwen County, in the southern province of Guizhou, to discover plantations of this fruit so extensive that they are lost on the horizon. Considering that this is one of the most impoverished territories in the country, it would be expected that farmers would work under harsh conditions and with the most rudimentary means. However, here and there, some surprising elements break the monotony of this green mass that covers more than 11,000 hectares. A video surveillance camera that transmits live through the 5G network, solar panels that provide power to sophisticated pest control systems, and sensors that collect data on all kinds of variables show that these farms have strongly embraced the technologies of the XXI century.

Less than a month remains until the next meeting of the Central Committee of the Communist Party of China, which will take place in early October. The global crisis caused by covid-19 and the outbreaks of the virus dominate all the media attention, leaving in the background the conclave in which the direction taken by the second most important economy in the world will be resolved. Everything indicates that there is going to be a turnaround in the country that could harm Europe and, especially, Germany in the medium term. China is preparing a strategy to reduce the dependence of its economy on abroad, through a plan that will lead the country to move closer to self-sufficiency to protect itself against the new 'era of disorder'. This change can pose a serious threat to the big trading partners of the 'Asian giant'.

Despite being seriously affected by the lockdowns as a result of Covid-19, China's economy has shown resistance tests. However, it has not fully recovered: some activities, especially in the services sector, have not yet recovered. Still, unlike much of the world, China seems unlikely to end up mired in a prolonged recession, thanks to its rapid digital transformation.

According to data released today, China's Caixin Manufacturing PMI reached 53.1 points in August, a substantial improvement from 52.8 in the previous month, indicating that the overall prosperity of the manufacturing industry is significantly better. The increase is the highest since January 2011.

The data has been in the expanding range for four consecutive months, and maintained a trend for the fourth consecutive month.